The Royalty License Agreement is a crucial commercial document used when an intellectual property owner (licensor) wishes to grant another party (licensee) the right to use, manufacture, sell, or distribute their intellectual property in exchange for royalty payments. This agreement is particularly important in the New Zealand context, where it must comply with local intellectual property laws, commercial regulations, and tax requirements. The document typically includes detailed provisions on payment calculations, reporting obligations, quality control measures, and intellectual property protection. It's commonly used in various commercial scenarios, from technology licensing to brand franchising, and can be adapted for both domestic and international licensing arrangements while maintaining compliance with New Zealand law.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement, ownership of intellectual property, and purpose of the license
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Grant of License: Scope of the license, territory, and field of use
5. Term: Duration of the agreement and renewal provisions
6. Royalty Payments: Royalty rates, calculation methods, payment terms, and reporting requirements
7. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights
8. Quality Control: Standards, inspection rights, and approval requirements
9. Intellectual Property Protection: IP ownership, protection obligations, and infringement procedures
10. Representations and Warranties: Standard warranties regarding IP ownership, right to license, and non-infringement
11. Confidentiality: Protection of confidential information exchanged under the agreement
12. Indemnification: Mutual indemnification obligations and procedures
13. Termination: Termination rights, procedures, and consequences
14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses
2. Minimum Performance Requirements: Include when there are minimum sales or revenue targets
3. Technology Transfer: Include when technical knowledge or support is part of the license
4. Export Control: Include for international licenses with export restrictions
5. Competition Law Compliance: Include specific provisions when dealing with market-sensitive arrangements
6. Source Code Escrow: Include for software licensing agreements
7. Marketing and Promotion: Include when specific marketing obligations exist
8. Product Development: Include when licensee will modify or develop the licensed property
9. Territory Restrictions: Include detailed territory provisions for geographic limitations
10. Change of Control: Include specific provisions regarding change in ownership of either party
1. Schedule 1 - Licensed Intellectual Property: Detailed description of the intellectual property being licensed
2. Schedule 2 - Royalty Rates and Calculations: Detailed breakdown of royalty rates, including any variable rates or tiers
3. Schedule 3 - Quality Standards: Specific quality requirements and testing procedures
4. Schedule 4 - Reporting Requirements: Forms and templates for royalty reporting
5. Schedule 5 - Technical Specifications: Technical details of the licensed property
6. Schedule 6 - Approved Sub-licensees: List of pre-approved sub-licensees if applicable
7. Schedule 7 - Territory Definition: Detailed description of geographic territories
8. Schedule 8 - Brand Guidelines: Guidelines for use of trademarks or branding
9. Appendix A - Audit Procedures: Detailed procedures for conducting royalty audits
10. Appendix B - Compliance Certificates: Templates for required compliance certifications
Relevant legal definitions
Clauses
Relevant Industries
Technology
Entertainment
Manufacturing
Pharmaceuticals
Biotechnology
Software Development
Media and Publishing
Consumer Goods
Industrial Design
Research and Development
Education
Fashion and Apparel
Gaming
Music and Recording
Telecommunications
Relevant Teams
Legal
Intellectual Property
Finance
Commercial
Business Development
Research and Development
Compliance
Accounting
Technology
Innovation
Product Development
Relevant Roles
Legal Counsel
Intellectual Property Manager
Licensing Director
Commercial Manager
Business Development Manager
Chief Technology Officer
Financial Controller
Compliance Officer
Research Director
Product Manager
Innovation Manager
Contract Administrator
Patent Attorney
Royalty Manager
Chief Financial Officer
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