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Manufacturing License Agreement for United Arab Emirates

Manufacturing License Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that enables one party (licensor) to authorize another party (licensee) to manufacture products using the licensor's proprietary technology, processes, or intellectual property. This agreement is structured in compliance with UAE Federal laws, including industrial regulations and intellectual property protection, and typically includes detailed provisions for quality control, technical specifications, royalty payments, and manufacturing standards. The document addresses specific UAE regulatory requirements, such as industrial licensing, environmental compliance, and local agency requirements where applicable.

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Manufacturing License Agreement

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What is a Manufacturing License Agreement?

The Manufacturing License Agreement is a critical document used when a technology owner wishes to authorize a manufacturer to produce products using their proprietary technology or intellectual property in the UAE. This agreement type is particularly relevant given the UAE's position as a major manufacturing hub and its strategic focus on industrial development. The document must comply with UAE Federal Law No. 17 of 2002 on Industrial Regulation and related intellectual property laws. It includes comprehensive provisions covering manufacturing rights, quality standards, technical specifications, royalty structures, and compliance requirements. The agreement is essential for technology transfer arrangements, joint manufacturing ventures, and industrial expansion projects in the UAE, particularly in free zones and industrial cities. Manufacturing License Agreements require careful consideration of local agency requirements, industrial licensing regulations, and environmental standards under UAE law.

What sections should be included in a Manufacturing License Agreement?

1. Parties: Identification of the licensor and licensee with full legal names and addresses

2. Background: Context of the agreement, including brief description of the licensed technology/products and parties' authority to enter into the agreement

3. Definitions: Detailed definitions of technical terms, product descriptions, territory, and other key terms used throughout the agreement

4. Grant of License: Scope of the manufacturing license, including territory, exclusivity/non-exclusivity, and any restrictions

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Manufacturing Standards: Required quality standards, manufacturing processes, and compliance with UAE industrial regulations

7. Quality Control: Quality assurance procedures, testing requirements, and inspection rights

8. Intellectual Property Rights: Ownership of IP, protection measures, and handling of improvements

9. Royalties and Payments: Financial terms, payment schedules, and calculation methods for royalties

10. Records and Audits: Requirements for maintaining records and rights of audit

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Representations: Warranties regarding IP ownership, product quality, and compliance with laws

13. Indemnification: Mutual indemnification obligations and liability limitations

14. Termination: Grounds for termination, notice requirements, and post-termination obligations

15. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms

What sections are optional to include in a Manufacturing License Agreement?

1. Training and Technical Support: Used when the licensor needs to provide technical training or ongoing support to the licensee

2. Sub-licensing Rights: Included when the licensee is permitted to sub-license manufacturing rights to third parties

3. Export Controls: Required when manufactured products may be exported outside the UAE

4. Environmental Compliance: Necessary when manufacturing involves specific environmental risks or requirements

5. Research and Development: Included when parties will collaborate on product improvements or new developments

6. Marketing and Branding: Used when the agreement includes rights to market or brand the manufactured products

7. Non-Competition: Added when parties agree to certain competitive restrictions

8. Force Majeure: Detailed force majeure provisions beyond standard clauses, particularly relevant for manufacturing operations

What schedules should be included in a Manufacturing License Agreement?

1. Schedule 1 - Licensed Products: Detailed specifications of products covered by the manufacturing license

2. Schedule 2 - Manufacturing Specifications: Technical requirements, processes, and quality standards for manufacturing

3. Schedule 3 - Quality Control Procedures: Detailed quality control protocols and acceptance criteria

4. Schedule 4 - Royalty Calculations: Detailed formula and examples for calculating royalties

5. Schedule 5 - Technical Documentation: List of technical documents, manuals, and specifications to be provided

6. Schedule 6 - Approved Manufacturing Facilities: List and details of approved manufacturing locations

7. Schedule 7 - Reporting Templates: Standard forms for production reports and royalty calculations

8. Appendix A - Licensed Patents and Trademarks: Detailed list of intellectual property covered by the agreement

9. Appendix B - Approved Sub-contractors: List of pre-approved sub-contractors if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions






































Clauses































Relevant Industries

Automotive Manufacturing

Pharmaceutical Production

Electronics Manufacturing

Industrial Equipment

Consumer Goods

Chemical Manufacturing

Aerospace Components

Medical Devices

Food and Beverage Processing

Textile Manufacturing

Relevant Teams

Legal

Operations

Manufacturing

Quality Control

Technical Development

Intellectual Property

Compliance

Commercial

Research & Development

Production

Engineering

Regulatory Affairs

Relevant Roles

Chief Technology Officer

Manufacturing Director

Head of Legal

Intellectual Property Manager

Operations Director

Quality Control Manager

Commercial Director

Licensing Manager

Technical Operations Manager

Compliance Officer

Industrial Development Manager

Production Manager

General Counsel

Chief Operating Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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