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Intercompany License Agreement for Germany

Intercompany License Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions for licensing intellectual property rights between entities within the same corporate group. The document addresses key aspects including license scope, payment terms, quality control, and compliance with German corporate and tax regulations. It incorporates specific provisions required under German law, including detailed documentation requirements for transfer pricing and intellectual property rights protection, while ensuring compliance with German competition law and intercompany transaction regulations.

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Intercompany License Agreement

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What is a Intercompany License Agreement?

The Intercompany License Agreement is essential for multinational corporations operating in Germany who need to formalize intellectual property rights usage between group entities. This document is particularly important in contexts where structured IP management and transfer pricing compliance are required under German law. It covers various types of intellectual property including patents, trademarks, copyrights, and know-how, while ensuring compliance with German corporate law, tax regulations, and competition law requirements. The agreement is typically used when establishing new operations, reorganizing IP rights within a group, or implementing global IP strategies. It must address specific German legal requirements including detailed documentation of arm's length pricing, clear definition of rights and obligations, and proper corporate approvals.

What sections should be included in a Intercompany License Agreement?

1. Parties: Identification of the contracting parties (licensor and licensee), including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between the parties as group companies, and purpose of the license arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including Licensed IP, Territory, Field of Use, etc.

4. Grant of License: Scope of the license grant, including type (exclusive/non-exclusive), territory, and field of use restrictions

5. License Fees and Payment Terms: Financial terms, payment schedule, currency, and transfer pricing considerations

6. IP Ownership and Protection: Confirmation of IP ownership, protection obligations, and handling of improvements

7. Quality Control: Quality standards, inspection rights, and compliance requirements

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

9. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

10. Post-Termination Obligations: Obligations surviving termination and wind-down provisions

11. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement clause

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

1. Sublicensing Rights: Include when sublicensing to other group companies is permitted

2. Technology Transfer: Include when technical knowledge or support is required for implementing the license

3. Audit Rights: Include when specific audit requirements beyond standard group company oversight are needed

4. Marketing and Promotion: Include when licensed IP involves trademarks or marketing rights

5. Data Protection: Include when personal data processing is involved in the license arrangement

6. Export Control: Include when licensed technology is subject to export control regulations

7. Tax Provisions: Include detailed tax provisions when complex cross-border arrangements apply

What schedules should be included in a Intercompany License Agreement?

1. Schedule 1 - Licensed IP: Detailed description of all intellectual property covered by the license

2. Schedule 2 - Technical Specifications: Technical requirements and specifications for licensed technology

3. Schedule 3 - Quality Standards: Detailed quality control requirements and procedures

4. Schedule 4 - Fee Schedule: Detailed breakdown of license fees and payment terms

5. Schedule 5 - Service Level Agreement: Technical support and maintenance terms if applicable

6. Appendix A - Approved Forms: Standard forms for reporting, notifications, or other communications

7. Appendix B - Transfer Pricing Documentation: Documentation supporting the arm's length nature of the license fees

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

Germany

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions





































Clauses





































Relevant Industries

Technology

Manufacturing

Pharmaceuticals

Consumer Goods

Automotive

Chemical

Software

Telecommunications

Financial Services

Healthcare

Energy

Industrial Products

Relevant Teams

Legal

Finance

Tax

Intellectual Property

Compliance

Research and Development

Commercial

Business Development

Corporate Affairs

Technology Transfer

Risk Management

Relevant Roles

Legal Counsel

IP Manager

Tax Director

Chief Financial Officer

Licensing Manager

Commercial Director

Corporate Counsel

Head of Legal

Transfer Pricing Specialist

Intellectual Property Director

Compliance Officer

General Counsel

Business Development Manager

Technology Transfer Manager

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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