A Licence And Royalty Agreement is essential when a party wishes to monetize their intellectual property by allowing others to use it while maintaining ownership rights. This agreement, governed by English and Welsh law, establishes the commercial framework for such arrangements, including specific usage rights, territory restrictions, quality standards, and detailed royalty calculation methods. It's particularly important in sectors where intellectual property forms a significant part of business assets and requires careful protection while enabling commercial exploitation.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement and ownership of intellectual property rights
3. Definitions: Key terms used throughout the agreement
4. Grant of Licence: Scope and nature of the licence being granted
5. Royalty Payments: Payment terms, calculation methods, and reporting requirements
6. Duration and Termination: Term of agreement and circumstances for termination
7. Warranties and Representations: Standard warranties from both parties
8. Confidentiality: Protection of confidential information
9. Governing Law and Jurisdiction: Applicable law and dispute resolution
1. Quality Control: Standards for licensed products/services - used when licensing involves manufacture or delivery of products
2. Minimum Performance Requirements: Minimum sales or usage requirements - used for performance-based licences
3. Territory Restrictions: Geographical limitations of the licence - used when licence is territory-specific
4. Sub-licensing Rights: Rights to grant sub-licences - used when sub-licensing might be needed
5. Competition Law Compliance: Provisions ensuring compliance with competition laws - used for agreements that might affect market competition
1. Licensed Rights Schedule: Detailed description of intellectual property being licensed
2. Royalty Calculation Schedule: Detailed methodology for calculating royalties
3. Reporting Template: Standard format for royalty reporting
4. Quality Standards Schedule: Detailed quality requirements and specifications
5. Approved Territory Schedule: List of territories where licence is valid
6. Minimum Performance Schedule: Detailed minimum performance requirements
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