The Royalty License Agreement is a crucial document used when intellectual property owners wish to monetize their IP while maintaining ownership and control. This agreement type is particularly relevant in New Zealand's commercial landscape, where it must comply with local intellectual property laws, contract law, and tax regulations. The document establishes the commercial relationship between the licensor and licensee, detailing the licensed property, permitted uses, territorial scope, royalty structures, and quality control measures. It's commonly used across various industries including technology, entertainment, manufacturing, and consumer goods, providing a framework for both domestic and international licensing arrangements while ensuring compliance with New Zealand's legal requirements.
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1. Parties: Identifies and provides full legal details of the licensor and licensee
2. Background: Sets out the context of the agreement, including ownership of the intellectual property and intention to license
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Grant of License: Specifies the exact rights being granted, including scope, territory, and exclusivity
5. Licensed Property: Detailed description of the intellectual property being licensed
6. Term and Termination: Duration of the license and circumstances under which it can be terminated
7. Royalty Payments: Details of royalty rates, calculation methods, and payment terms
8. Reporting and Auditing: Requirements for sales reporting and licensor's audit rights
9. Quality Control: Standards and requirements for use of the licensed property
10. Intellectual Property Protection: Obligations regarding IP protection, infringement, and enforcement
11. Warranties and Representations: Warranties given by both parties regarding their rights and capabilities
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Confidentiality: Obligations regarding confidential information
14. General Provisions: Standard legal provisions including notices, governing law, and dispute resolution
1. Sublicensing Rights: Include when licensee is permitted to sublicense the intellectual property to third parties
2. Minimum Performance Requirements: Include when setting minimum sales or revenue targets for the licensee
3. Development Obligations: Include when licensee must develop or modify the licensed property
4. Export Controls: Include for international licensing arrangements
5. Marketing and Promotion: Include when specific marketing obligations or restrictions apply
6. Source Code Escrow: Include for software-related licenses where source code protection is needed
7. Change of Control: Include when restrictions on corporate changes are required
8. Territory Restrictions: Include when specific geographical limitations apply
9. Competition Law Compliance: Include when there are specific competition law considerations
1. Schedule 1 - Licensed Property: Detailed technical specifications or descriptions of the licensed intellectual property
2. Schedule 2 - Royalty Rates: Detailed breakdown of royalty rates, including any variable rates or special conditions
3. Schedule 3 - Approved Products: List of products or services approved for use with the licensed property
4. Schedule 4 - Quality Standards: Specific quality control requirements and standards
5. Schedule 5 - Reporting Template: Template for regular royalty reporting
6. Schedule 6 - Territory Definition: Detailed description of licensed territories if geographically limited
7. Appendix A - Brand Guidelines: Guidelines for proper use of licensed trademarks or branding
8. Appendix B - Technical Documentation: Technical specifications or documentation for licensed technology
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Media and Entertainment
Manufacturing
Pharmaceuticals
Biotechnology
Consumer Goods
Fashion and Apparel
Industrial Design
Research and Development
Publishing
Gaming
Music Industry
Automotive
Electronics
Relevant Teams
Legal
Intellectual Property
Finance
Commercial
Business Development
Compliance
Accounting
Product Development
Research and Development
Brand Management
Relevant Roles
Legal Counsel
Intellectual Property Manager
Commercial Director
Licensing Manager
Business Development Manager
Chief Financial Officer
Contract Administrator
IP Rights Manager
Royalty Accountant
Compliance Officer
Technology Transfer Manager
Patent Attorney
Brand Manager
Product Development Manager
Finance Director
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