The Endorsement Agreement serves as a critical legal instrument in India's marketing and advertising landscape, establishing the framework for celebrity and influencer endorsements of products or services. This document has gained increased importance following stricter regulatory oversight, particularly after the introduction of the 2022 Guidelines for Prevention of Misleading Advertisements. It outlines the endorser's obligations, compensation terms, usage rights, and compliance requirements while protecting both parties' interests. The agreement is essential for businesses seeking to leverage celebrity influence while ensuring compliance with Indian advertising standards, consumer protection laws, and industry-specific regulations. It typically includes detailed provisions for social media usage, content approval processes, exclusivity terms, and morality clauses, adapting to the evolving digital marketing landscape while maintaining regulatory compliance.
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1. Parties: Identifies the endorser (celebrity/influencer) and the company seeking endorsement, including full legal names and addresses
2. Background: Contextual information about the endorsement relationship, company's products/services, and endorser's reputation/expertise
3. Definitions: Defines key terms used throughout the agreement, including 'Endorsement Services', 'Territory', 'Term', 'Products', and 'Intellectual Property'
4. Scope of Endorsement: Details the specific endorsement services, platforms, and products covered under the agreement
5. Term and Territory: Duration of the agreement and geographical scope of the endorsement
6. Endorser's Obligations: Specific duties, appearances, social media posts, shoot requirements, and compliance with regulations
7. Company's Obligations: Company's responsibilities, including providing products, information, and support for endorsement activities
8. Compensation: Payment terms, including base fees, royalties, performance bonuses, and payment schedule
9. Intellectual Property Rights: Usage rights, licenses, and restrictions regarding endorser's name, image, and likeness
10. Compliance and Due Diligence: Regulatory compliance requirements, including ASCI guidelines and advertising standards
11. Representations and Warranties: Statements of fact and guarantees from both parties
12. Termination: Conditions and process for ending the agreement, including breach and consequences
13. Confidentiality: Protection of sensitive information shared during the endorsement relationship
14. Dispute Resolution: Process for resolving disagreements, including jurisdiction and governing law
15. General Provisions: Standard contractual clauses including notices, amendments, and severability
1. Exclusivity: Used when the endorser is restricted from endorsing competing products/services
2. Digital Rights and Social Media: Detailed section when endorsement involves significant social media presence
3. Morality Clause: Protection for company against endorser's public misconduct or reputation damage
4. International Usage: Required when endorsement extends beyond Indian territory
5. Emergency Suspension: Provisions for temporarily suspending endorsement during crises or controversies
6. Performance Metrics: Include when compensation is tied to specific performance indicators
7. Content Approval Process: Detailed procedures when strict control over endorsed content is required
8. Insurance Requirements: Specific insurance obligations for high-value or high-risk endorsements
1. Schedule A - Endorsed Products: Detailed list and descriptions of products/services covered under the endorsement
2. Schedule B - Compensation Structure: Detailed breakdown of fees, royalties, and payment terms
3. Schedule C - Endorsement Activities: Specific requirements for appearances, shoots, social media posts, and other activities
4. Schedule D - Brand Guidelines: Company's branding requirements and usage guidelines
5. Schedule E - Approval Process: Timelines and procedures for content approval and feedback
6. Appendix 1 - Social Media Guidelines: Specific requirements for social media posts and engagement
7. Appendix 2 - Compliance Checklist: Regulatory requirements and due diligence checklist
8. Appendix 3 - Performance Metrics: Specific KPIs and measurement criteria if applicable
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