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Non Exclusive Commercial License

Non Exclusive Commercial License Template for Canada

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Key Requirements PROMPT example:

Non Exclusive Commercial License

"I need a Non-Exclusive Commercial License agreement for licensing our patented manufacturing process to multiple automotive companies in Canada, with quarterly royalty payments of 3% of net sales and a minimum annual commitment of $500,000, starting March 1, 2025."

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Document background
The Non-Exclusive Commercial License agreement is essential for businesses seeking to monetize their intellectual property while maintaining flexibility to grant similar rights to multiple parties. This document is commonly used in Canada when a rights holder wishes to permit commercial exploitation of their IP (such as patents, trademarks, copyrights, or trade secrets) without limiting their ability to enter into additional licensing arrangements. The agreement must comply with Canadian federal legislation, including the Copyright Act, Patent Act, Trademarks Act, and Competition Act, as well as relevant provincial laws. It typically includes detailed provisions on license scope, territory restrictions, payment terms, quality control measures, and compliance requirements. This type of agreement is particularly valuable in scenarios where exclusive rights are not necessary or desired, and where multiple licensees can operate without significantly diminishing the value of the licensed IP.
Suggested Sections

1. Parties: Identification and details of the licensor and licensee, including registered addresses and company details

2. Background: Context of the agreement, including brief description of the intellectual property and purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of License: Specific terms of the non-exclusive license, including scope, territory, and field of use

5. License Fees and Payment Terms: Details of licensing fees, royalties, payment schedule, and payment methods

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

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

8. Warranties and Representations: Standard warranties regarding ownership, right to license, and non-infringement

9. Confidentiality: Obligations regarding protection of confidential information

10. Limitation of Liability: Limitations on liability and indemnification provisions

11. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment

Optional Sections

1. Quality Control: Requirements for maintaining quality standards when using licensed IP, particularly important for trademark licenses

2. Sublicensing Rights: Terms governing if and how the licensee may sublicense to third parties

3. Performance Obligations: Minimum performance requirements or sales targets, if applicable

4. Technical Support and Maintenance: Terms for ongoing technical support and maintenance if the license involves software or technical products

5. Export Control: Compliance requirements for international usage of licensed material

6. Source Code Escrow: Terms for source code escrow arrangements, relevant for software licenses

7. Data Protection: Specific provisions for handling personal data under PIPEDA, if applicable

8. Marketing and Promotion: Terms governing how the licensed IP can be used in marketing materials

Suggested Schedules

1. Schedule A - Licensed Property: Detailed description of the intellectual property being licensed

2. Schedule B - Territory: Detailed description of the geographic territory where the license applies

3. Schedule C - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms

4. Schedule D - Technical Specifications: Technical details and specifications of the licensed property

5. Schedule E - Quality Control Guidelines: Specific quality control requirements and procedures

6. Schedule F - Approved Uses: Specific approved uses and applications of the licensed property

7. Schedule G - Service Level Agreement: Details of support and maintenance services if applicable

8. Schedule H - Reporting Requirements: Templates and requirements for periodic reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions


































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Relevant Industries

Technology and Software

Manufacturing

Biotechnology

Media and Entertainment

Pharmaceuticals

Consumer Products

Research and Development

Telecommunications

Energy

Automotive

Healthcare

Financial Services

Relevant Teams

Legal

Intellectual Property

Business Development

Commercial

Research and Development

Finance

Compliance

Technology

Operations

Strategy

Relevant Roles

Chief Legal Officer

Intellectual Property Counsel

Licensing Manager

Business Development Director

Chief Technology Officer

Commercial Director

Contract Manager

Legal Counsel

IP Portfolio Manager

Technology Transfer Officer

Chief Executive Officer

Chief Financial Officer

Research and Development Director

Compliance Officer

Industries








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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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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