The Non-Exclusive Patent License Agreement is essential for businesses and institutions seeking to commercialize patented technologies in Pakistan while maintaining flexibility in licensing strategy. This document is typically used when a patent holder wishes to monetize their intellectual property by allowing multiple parties to utilize their patented technology, maximizing potential revenue streams while retaining control over the patent rights. The agreement must comply with Pakistani legislation, particularly the Patents Ordinance 2000 and Contract Act 1872, and includes crucial elements such as license scope, territory restrictions, royalty structures, quality control measures, and compliance requirements. It's particularly valuable in industries where technological sharing and standardization are common, or where exclusive licensing might be commercially impractical or undesirable.
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1. Parties: Identification of the Licensor and Licensee with their full legal names and addresses
2. Background: Context of the agreement, including patent details and purpose of the license
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. Patent Rights: Detailed description of the licensed patents and associated rights
6. Payment Terms: License fees, royalties, payment schedule, and calculation methods
7. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights
8. Quality Control: Standards for products/processes using the licensed patent
9. Representations and Warranties: Warranties regarding patent ownership, validity, and non-infringement
10. Term and Termination: Duration of the agreement and termination provisions
11. Confidentiality: Protection of confidential information exchanged under the agreement
12. Indemnification: Mutual indemnification obligations for losses and claims
13. Governing Law and Dispute Resolution: Pakistani law as governing law and dispute resolution mechanisms
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Sublicensing Rights: Include when licensee may need to sublicense the patent rights to affiliates or third parties
2. Improvements: Include when parties want to address ownership and licensing of improvements to the patented technology
3. Technical Support: Include when licensor will provide technical assistance or knowledge transfer
4. Export Control: Include for technologies subject to export control regulations
5. Marketing and Promotion: Include when specific marketing requirements or restrictions apply
6. Insurance Requirements: Include when specific insurance coverage is required for patent exploitation
7. Change of Control: Include when agreement needs to address consequences of ownership changes
8. Competition Law Compliance: Include specific provisions to ensure compliance with competition laws
1. Schedule A - Licensed Patents: Detailed list of licensed patents including registration numbers and jurisdictions
2. Schedule B - Technical Specifications: Technical details and specifications of the licensed technology
3. Schedule C - Royalty Calculations: Detailed methodology for calculating royalties and examples
4. Schedule D - Quality Standards: Specific quality requirements and testing procedures
5. Schedule E - Approved Sub-licensees: List of pre-approved sub-licensees if applicable
6. Appendix 1 - Reporting Ƶ: Standard forms for royalty reporting and other required reports
7. Appendix 2 - Technical Documentation: Supporting technical documents and drawings
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