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Limited Use License Agreement for Canada

Limited Use License Agreement Template for Canada

A Canadian Limited Use License Agreement is a legally binding document that establishes the terms and conditions under which intellectual property, software, content, or other proprietary materials can be used by a licensee. This agreement, governed by Canadian federal and provincial laws, specifically restricts the scope, duration, and manner of use of the licensed material. It includes detailed provisions for intellectual property protection, usage limitations, payment terms, and compliance with Canadian privacy and consumer protection regulations. The agreement serves as a crucial tool for protecting the licensor's rights while providing clear guidelines for the licensee's permitted use of the material.

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Limited Use License Agreement

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What is a Limited Use License Agreement?

The Limited Use License Agreement is essential for businesses and individuals in Canada who wish to grant controlled access to their intellectual property, software, or proprietary content while maintaining ownership rights. This document is particularly relevant in today's digital economy where licensing of technology and content is increasingly common. The agreement must comply with Canadian federal laws including the Copyright Act, Patent Act, and Personal Information Protection and Electronic Documents Act (PIPEDA), as well as relevant provincial legislation. It typically includes specific provisions for usage restrictions, territory limitations, confidentiality requirements, and termination rights. The Limited Use License Agreement is distinct from other license types as it specifically restricts the scope and nature of permitted use, making it ideal for situations where the licensor wants to maintain tight control over how their intellectual property is used.

What sections should be included in a Limited Use License Agreement?

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

2. Background: Context of the agreement, nature of the licensed material, and general purpose of the license

3. Definitions: Defined terms used throughout the agreement, including technical terms and specific usage definitions

4. Grant of License: Specific details of the license grant, including scope, territory, and duration

5. License Restrictions: Clear outline of prohibited uses and limitations on the license

6. Payment Terms: License fees, payment schedule, and related financial terms

7. Intellectual Property Rights: Confirmation of ownership and protection of IP rights

8. Confidentiality: Protection of confidential information exchanged under the agreement

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Warranties and Disclaimers: Warranties provided and limitations of liability

11. Governing Law: Specification of Canadian law as governing law and jurisdiction

12. General Provisions: Standard boilerplate clauses including assignment, notices, and entire agreement

What sections are optional to include in a Limited Use License Agreement?

1. Maintenance and Support: Include when ongoing technical support or maintenance services are part of the license

2. Data Protection: Include when personal data processing is involved in the licensed usage

3. Source Code Escrow: Include for software licenses where source code protection is required

4. Export Controls: Include when licensed material may be subject to international trade restrictions

5. Audit Rights: Include when licensor requires right to audit licensee's usage

6. Service Levels: Include when the license includes specific performance requirements

7. Territory Restrictions: Include when license is restricted to specific geographic regions

8. Sublicensing Rights: Include when licensee is permitted to sublicense to third parties

What schedules should be included in a Limited Use License Agreement?

1. Schedule A - Licensed Material: Detailed description of the licensed material, including technical specifications

2. Schedule B - License Fees: Detailed breakdown of license fees and payment structure

3. Schedule C - Technical Requirements: Technical specifications and requirements for using the licensed material

4. Schedule D - Service Levels: Detailed service level commitments and metrics, if applicable

5. Appendix 1 - Authorized Users: List of authorized users or user categories permitted to use the licensed material

6. Appendix 2 - Acceptable Use Policy: Detailed policies governing the acceptable use of the licensed material

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

Jurisdiction

Canada

Document Type

User Agreement

Cost

Free to use
Relevant legal definitions





























Clauses





























Relevant Industries

Technology

Software Development

Digital Media

Entertainment

Research and Development

Healthcare

Education

Manufacturing

Financial Services

Telecommunications

Biotechnology

Publishing

Gaming

Relevant Teams

Legal

Intellectual Property

Licensing

Compliance

Business Development

Product Development

Research and Development

Information Technology

Operations

Commercial

Risk Management

Contract Administration

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Manager

Contract Administrator

Business Development Director

Technology Transfer Officer

Software Development Manager

Product Manager

Chief Technology Officer

Chief Legal Officer

Compliance Officer

IP Rights Manager

Commercial Director

Operations Manager

Research Director

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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