The Perpetual License Agreement is essential for businesses seeking to establish long-term licensing relationships under Indian jurisdiction. It is particularly relevant when a licensor wishes to grant permanent usage rights to their intellectual property, software, or technology in exchange for a one-time fee or structured payments. The agreement becomes necessary when parties need a permanent arrangement rather than a subscription or time-limited license. It typically includes detailed provisions for usage rights, territorial restrictions, technical specifications, and support terms, all while ensuring compliance with Indian legislative requirements including the IT Act 2000, Copyright Act 1957, and Contract Act 1872. This type of agreement is commonly used in software licensing, technology transfers, and intellectual property commercialization within the Indian market.
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1. Parties: Identifies and defines the Licensor and Licensee with their complete legal details
2. Background: Sets out the context of the agreement, including brief description of the licensed product/technology and parties' intentions
3. Definitions: Defines key terms used throughout the agreement including 'Licensed Product', 'Intellectual Property Rights', 'Territory', etc.
4. Grant of License: Specifies the scope, nature, and territory of the perpetual license being granted
5. License Fees: Details the one-time or installment-based payment structure for the perpetual license
6. Intellectual Property Rights: Confirms ownership of IP rights and specifies restrictions on use
7. Licensee Obligations: Lists the responsibilities and obligations of the Licensee in using the licensed product
8. Warranties and Representations: States the warranties provided by both parties, especially regarding IP ownership and product functionality
9. Limitation of Liability: Sets out the extent and limitations of each party's liability
10. Confidentiality: Defines confidential information and obligations regarding its protection
11. Term and Termination: Despite being perpetual, specifies conditions for termination in case of breach
12. Post-Termination Obligations: Outlines obligations and rights of parties after termination
13. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for dispute resolution
14. General Provisions: Includes standard boilerplate clauses like notices, entire agreement, amendments, etc.
1. Support and Maintenance: Optional section when ongoing technical support or maintenance services are included with the license
2. Updates and Upgrades: Used when the agreement includes rights to future versions or updates of the licensed product
3. Source Code Escrow: Included when source code access might be necessary under specific conditions
4. Data Protection: Required when the licensed product involves processing of personal data
5. Export Control: Necessary when the licensed product is subject to export control regulations
6. Training: Included when the licensor provides training services for the licensed product
7. Audit Rights: Optional section giving licensor rights to audit licensee's use of the licensed product
1. Schedule 1 - Licensed Product Description: Detailed technical specifications and description of the licensed product
2. Schedule 2 - License Fees: Detailed breakdown of license fees and payment terms
3. Schedule 3 - Technical Requirements: Minimum technical specifications or requirements for using the licensed product
4. Schedule 4 - Service Level Agreement: If applicable, details of support and maintenance service levels
5. Appendix A - Authorized Users: If applicable, list of authorized users or usage parameters
6. Appendix B - Territory: Detailed description of geographic territory where license can be used
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software Development
Healthcare
Manufacturing
Education
Research & Development
Financial Services
Telecommunications
Pharmaceutical
Automotive
Energy
Retail
Relevant Teams
Legal
Information Technology
Procurement
Intellectual Property
Business Development
Commercial
Compliance
Software Development
Contracts Administration
Risk Management
Relevant Roles
Legal Counsel
Chief Technology Officer
Intellectual Property Manager
Licensing Manager
Contract Administrator
Business Development Manager
Chief Information Officer
Software Development Manager
Procurement Manager
Technology Director
Commercial Director
Chief Legal Officer
IP Rights Specialist
Compliance Officer
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