Quality Control:
If the goods or services are provided directly by the trademark owner, quality control is inherent, because the owner purchases the raw materials, manufactures the products, and does the design work, advertising, and marketing. If a wholly-owned subsidiary is involved, control by the parent is assumed. If a trademark is used by an affiliate or licensee, there should be a formal license agreement. The affiliate or licensee produces and markets the goods, and the owner exercises quality control by setting standards and performing inspections. The owner should have control over the mark on paper and also exercise actual onsite control.