The Non-Exclusive License Agreement is a crucial legal instrument used in Pakistan when intellectual property owners wish to monetize their IP while retaining the flexibility to grant similar rights to multiple users. This document type is particularly relevant in today's dynamic business environment where exclusive arrangements may not be commercially optimal. The agreement must comply with Pakistani legal requirements, including the Contract Act 1872, relevant IP legislation, and competition laws. It typically includes comprehensive provisions covering license scope, territory, payment terms, quality control, and performance standards. The non-exclusive nature allows the licensor to maintain market presence through multiple channels while providing licensees with necessary operational rights. This agreement type is commonly used in technology transfers, software licensing, manufacturing arrangements, and brand licensing scenarios in the Pakistani market.
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1. Parties: Identification and details of the Licensor and Licensee, including registered addresses and company registration numbers
2. Background: Context of the agreement, description of the licensed property, and parties' authority to enter into the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the non-exclusive license, permitted uses, and territory
5. License Fee and Payment Terms: Financial terms including license fees, royalties, payment schedules, and reporting requirements
6. Duration and Termination: Term of the agreement, renewal provisions, and circumstances for termination
7. Licensor's Obligations: Responsibilities of the licensor including maintaining IP rights and providing technical support
8. Licensee's Obligations: Responsibilities of the licensee including usage restrictions and quality control requirements
9. Intellectual Property Rights: Ownership of IP, protection measures, and handling of improvements
10. Confidentiality: Protection of confidential information exchanged during the license period
11. Warranties and Representations: Standard warranties regarding ownership, authority, and non-infringement
12. Liability and Indemnification: Limitation of liability and mutual indemnification provisions
13. Governing Law and Jurisdiction: Pakistani law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Quality Control: Required when licensing trademarks or when product quality standards need to be maintained
2. Sub-licensing Rights: Include when the licensee may need to sub-license the rights
3. Source Code Escrow: For software licenses where source code access may be needed in specific circumstances
4. Training and Support: When technical training or ongoing support is part of the license arrangement
5. Export Control: For licenses involving technology or products subject to export restrictions
6. Performance Requirements: When minimum performance or sales targets are required
7. Insurance: When specific insurance coverage is required for the licensed activities
8. Audit Rights: When detailed financial or usage auditing rights are needed
1. Schedule 1 - Licensed Property: Detailed description of the intellectual property being licensed
2. Schedule 2 - Technical Specifications: Technical details and requirements for the licensed property
3. Schedule 3 - Fee Schedule: Detailed breakdown of license fees, royalties, and payment terms
4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures
5. Schedule 5 - Support Services: Details of any technical support or maintenance services
6. Appendix A - Approved Form of Reports: Ƶ for required reporting under the agreement
7. Appendix B - Brand Guidelines: If applicable, guidelines for using licensed trademarks or branding
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