A Sub Licence Agreement is utilized when a licensee wishes to extend certain rights they have received under a head license to a third party. This document is essential in various commercial contexts, particularly in technology transfer, intellectual property licensing, and franchise arrangements. The agreement must carefully balance the rights and obligations between all parties while ensuring compliance with both the head license terms and Canadian legal requirements. It typically includes detailed provisions on the scope of sub-licensed rights, payment structures, quality control measures, and termination conditions. The document is particularly important in Canadian business operations where intellectual property rights need to be properly protected and commercialized while adhering to federal and provincial regulations. This type of agreement requires careful consideration of competition laws, intellectual property statutes, and industry-specific regulations that may affect the sub-licensing arrangement.
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1. Parties: Identification of the sub-licensor and sub-licensee, including full legal names and addresses
2. Background: Context of the agreement, including reference to the head license and confirmation of sub-licensing rights
3. Definitions: Key terms used in the agreement, including those incorporated from the head license
4. Grant of Sub-License: Scope of rights being sub-licensed, including any territorial or field-of-use restrictions
5. Relationship with Head License: Incorporation of head license terms and obligations
6. Payment Terms: Sub-license fees, royalties, and payment schedules
7. Sub-Licensee Obligations: Specific duties, restrictions, and compliance requirements
8. Intellectual Property Rights: Ownership provisions and protection of IP rights
9. Confidentiality: Protection of confidential information and trade secrets
10. Term and Termination: Duration of agreement and termination provisions, including automatic termination upon head license termination
11. Warranties and Indemnities: Representations, warranties, and indemnification obligations
12. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Quality Control: Required for trademark sub-licenses to maintain quality standards
2. Technical Support: Include when sub-licensee requires technical assistance or training
3. Export Control: Necessary when dealing with technology or products subject to export regulations
4. Source Code Escrow: For software sub-licenses where source code access may be required
5. Data Protection: Required when personal data processing is involved
6. Manufacturing Rights: Include when sub-license includes right to manufacture licensed products
7. Marketing Requirements: When sub-licensee has obligations regarding marketing or branding
1. Schedule A - Head License: Copy or relevant excerpts of the head license agreement
2. Schedule B - Licensed IP: Detailed description of intellectual property being sub-licensed
3. Schedule C - Territory: Definition of geographical territories where sub-license rights apply
4. Schedule D - Royalty Calculations: Detailed methodology for calculating royalties or fees
5. Schedule E - Technical Specifications: Technical requirements or specifications for licensed products/technology
6. Schedule F - Quality Control Standards: Quality control requirements and procedures
7. Appendix 1 - Approved Sub-Licensed Products: List of products/services covered by the sub-license
8. Appendix 2 - Reporting Templates: Standard forms for required reporting under the agreement
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Pharmaceuticals and Healthcare
Manufacturing
Media and Entertainment
Telecommunications
Biotechnology
Consumer Goods
Research and Development
Fashion and Retail
Automotive
Energy and Resources
Relevant Teams
Legal
Intellectual Property
Commercial
Business Development
Compliance
Operations
Research and Development
Finance
Product Management
Strategy
Relevant Roles
Legal Counsel
Intellectual Property Manager
Licensing Director
Commercial Director
Business Development Manager
Contract Manager
Chief Legal Officer
IP Rights Administrator
Technology Transfer Officer
Compliance Officer
General Counsel
Partnership Manager
Commercial Operations Manager
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