Licensing

• The owners of a trademark have legal rights as far as the use of the trademark goes. A trademark name is usually indicated by the presence of a tiny symbol: a "TM" or an "R" in a circle. The owner of the trademark may license it out to a third party, provided that the party uses it in a manner which the trademark owner deems acceptable. In the case of movies, the motion picture production company usually constitutes a third party, meaning that they must receive a license in order to use a trademark. There are some exceptions, however.
  
  

Product Placement

• A filmmaker who wishes to generate revenue for his production may obtain a licensed trademark name from the trademark owner. The owner agrees to let his trademark appear prominently in the film in exchange for a set fee (and presumably an assurance that the trademark name will be portrayed in a positive or upbeat manner). In some cases, the trademark name makes an incidental appears: for example, it appears on a billboard visible behind a main character as he speaks. In other cases, the trademark plays a vital part in the storyline: a famous example is the movie "E.T.," in which the titular alien evinced a fondness for Reese's Pieces.
  
  

Fair Use

• While trademark name owners may pay to place their intellectual property on a film screen, they can't always prevent filmmakers from using it for free. Fair-use laws dictate that any movie or television show can include a trademark name provided that the product associated with that name is portrayed in the way the name owner intends. For instance, a film could show a package being delivered by FedEx or one of the characters drinking a can of Coke.
  
  

Considerations

• Fair-use laws are often a matter of debate, which can create legal difficulties if the trademark name owner doesn't like how the product is presented. In some cases, the issue can be resolved before filming begins, with the filmmakers either modifying their script to address the trademark name holder's grievance or dropping the trademark name altogether. In the worst cases, the trademark owner and filmmakers must go to court to determine fair use. Many filmmakers are canny enough to exercise caution when using trademark names. For instance, the movie "Falling Down" entails a gunman holding the patrons of a fast-food restaurant hostage. Though the depiction of the restaurant in the film could be described as fair use, the filmmakers didn't give it an existing trademark name in order to avoid conflict; the restaurant in the movie used the name of a fictitious burger chain.