The Out Licensing Agreement is a vital commercial instrument used when an organization or individual (licensor) wishes to grant rights to their intellectual property while maintaining ownership. This document, structured under Indian law, is particularly crucial in today's knowledge-based economy where IP commercialization is a key revenue stream. The agreement covers essential aspects such as scope of license, territory, royalty structures, quality control, and compliance with Indian regulatory requirements. It's commonly used in various scenarios ranging from technology transfer and software licensing to trademark franchising and patent licensing. The document must comply with multiple Indian legislations including the Patents Act 1970, Copyright Act 1957, and Trade Marks Act 1999, while also considering Foreign Exchange Management Act (FEMA) requirements for international licensing arrangements.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement, including ownership of IP and purpose of licensing
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Grant of License: Scope, nature, and territory of the license granted
5. License Fees and Royalties: Payment terms, calculation methods, and payment schedules
6. Term and Termination: Duration of the agreement and circumstances for termination
7. Licensee Obligations: Core responsibilities and obligations of the licensee
8. Quality Control: Standards and requirements for maintaining quality in licensed products/services
9. Intellectual Property Protection: Provisions for maintaining and protecting the licensed IP
10. Confidentiality: Protection of confidential information exchanged during the agreement
11. Representations and Warranties: Statements and guarantees made by both parties
12. Indemnification: Protection against third-party claims and liability allocation
13. Dispute Resolution: Procedures for resolving disputes between parties
14. Governing Law: Specification of Indian law as governing law and jurisdiction
15. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Technology Transfer: Details of technical knowledge transfer, used when licensed IP requires significant technical support
2. Regulatory Compliance: Specific compliance requirements, included when product/service is regulated
3. Sub-licensing Rights: Terms for sub-licensing, included when sub-licensing is permitted
4. Export Control: Export restrictions and compliance, needed for international licensing
5. Improvements: Rights and obligations regarding improvements to licensed IP
6. Performance Obligations: Specific performance targets, included when minimum performance is required
7. Training and Support: Details of training and ongoing support, needed for complex technology licensing
8. Insurance: Insurance requirements, included for high-risk products or services
9. Source Code Escrow: Escrow arrangements for software licensing agreements
1. Schedule 1 - Licensed Intellectual Property: Detailed description of all IP being licensed
2. Schedule 2 - Royalty Calculations: Detailed formulas and examples of royalty calculations
3. Schedule 3 - Technical Specifications: Technical details and requirements of licensed technology
4. Schedule 4 - Quality Standards: Detailed quality control requirements and procedures
5. Schedule 5 - Territory: Detailed description of licensed territory and any restrictions
6. Schedule 6 - Approved Sub-contractors: List of approved sub-contractors if applicable
7. Appendix A - Reporting Ƶ: Standard forms for required reports and notifications
8. Appendix B - Technology Transfer Plan: Detailed plan for technology transfer if applicable
9. Appendix C - Compliance Requirements: Specific regulatory or industry compliance requirements
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