The Exclusive Perpetual License agreement is a critical legal instrument used when a party wishes to grant permanent and exclusive rights to their intellectual property while retaining underlying ownership. This document type is particularly relevant for high-value intellectual property transactions where the licensee requires guaranteed long-term access and market exclusivity. The agreement, governed by Indian law, must carefully balance the perpetual nature of the license with provisions for quality control and potential termination in extreme circumstances. It typically includes detailed specifications of the licensed IP, territory restrictions, payment terms, and compliance requirements. The document is essential for strategic business relationships involving patents, trademarks, copyrights, or trade secrets, where the licensee seeks to secure exclusive market position through perpetual rights acquisition.
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1. Parties: Identification of the licensor and licensee with full legal names and addresses
2. Background: Context of the agreement, description of the intellectual property, and parties' authority to enter into the agreement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of License: Explicit statement of the exclusive, perpetual license grant and its scope
5. Territory: Geographic scope where the license rights can be exercised
6. License Fee and Payment Terms: Details of one-time fees, recurring royalties, and payment mechanisms
7. Intellectual Property Rights: Ownership confirmation and protection of underlying IP rights
8. Quality Control: Standards and requirements for use of the licensed IP
9. Representations and Warranties: Parties' assertions regarding their rights, authority, and IP validity
10. Indemnification: Obligations to protect against third-party claims and IP infringement
11. Confidentiality: Protection of confidential information exchanged under the agreement
12. Term and Termination: Duration of the agreement and circumstances allowing termination despite perpetual nature
13. Post-Termination Obligations: Parties' obligations following any termination event
14. Governing Law and Jurisdiction: Application of Indian law and jurisdiction for dispute resolution
15. General Provisions: Standard boilerplate clauses including notices, amendment process, and severability
1. Sublicensing Rights: Include when licensee is permitted to grant sublicenses
2. Improvements: Include when dealing with technology that may be improved over time, specifying rights to improvements
3. Source Code Escrow: Include for software licenses to ensure code availability
4. Export Control: Include when licensed IP may be subject to export regulations
5. Performance Obligations: Include when licensee must meet specific performance targets
6. Marketing and Promotion: Include when specific marketing obligations or restrictions apply
7. Technical Support: Include when ongoing technical support is part of the agreement
8. Training: Include when licensor must provide training for licensed technology
9. Insurance: Include when specific insurance coverage is required for licensed activities
1. Schedule A - Licensed Intellectual Property: Detailed description of all IP covered by the license, including registration numbers
2. Schedule B - Technical Specifications: Technical details and requirements for the licensed IP
3. Schedule C - Quality Control Standards: Specific quality standards and testing procedures
4. Schedule D - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms
5. Schedule E - Approved Use Guidelines: Specific guidelines for how the licensed IP may be used
6. Appendix 1 - Form of Reports: Ƶ for required reporting
7. Appendix 2 - Contact Information: Key contacts for both parties for various purposes under the agreement
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