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Limited License Agreement for Saudi Arabia

Limited License Agreement Template for Saudi Arabia

A Limited License Agreement under Saudi law is a legally binding document that grants specific, restricted rights to use intellectual property, technology, or other proprietary assets while maintaining the owner's underlying rights. This agreement, governed by Saudi Arabian law and Shariah principles, establishes clear boundaries for usage, duration, and territorial scope of the licensed material. It includes provisions for compliance with local regulations, including technology transfer laws, foreign investment requirements, and intellectual property protection under Saudi jurisdiction. The agreement typically addresses payment terms, quality control measures, and dispute resolution mechanisms in accordance with Saudi commercial law.

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Limited License Agreement

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What is a Limited License Agreement?

The Limited License Agreement is essential for businesses operating in Saudi Arabia who wish to grant or receive limited rights to use intellectual property, technology, or other proprietary assets. This document is particularly relevant in the context of Saudi Arabia's Vision 2030 economic transformation, which emphasizes technology transfer, innovation, and industrial development. The agreement must comply with Saudi law, including the Commercial Law (Royal Decree No. M/32), Intellectual Property regulations, and Shariah principles. It typically includes detailed provisions on usage scope, territorial restrictions, payment terms, and quality control measures. This type of agreement is commonly used in technology transfers, software licensing, patent licensing, and industrial process licensing, where the licensor wishes to maintain control while allowing specific, limited use of their intellectual property.

What sections should be included in a Limited License Agreement?

1. Parties: Identification of the licensor and licensee, including full legal names, addresses, and commercial registration details as required under Saudi law

2. Background: Context of the agreement, nature of the licensed material/technology, and basis for the licensing relationship

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms and Arabic/English equivalents where necessary

4. Grant of License: Specific details of the license granted, including scope, limitations, and territory restrictions

5. License Limitations: Clear boundaries of permitted and prohibited uses of the licensed material

6. Term and Termination: Duration of the license, renewal terms, and conditions for termination

7. Payment Terms: License fees, payment schedule, and currency specifications compliant with Saudi banking regulations

8. Intellectual Property Rights: Declaration of IP ownership, protection measures, and handling of improvements or modifications

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Warranties and Representations: Statements of authority to license and compliance with Shariah principles

11. Liability and Indemnification: Limitations of liability and indemnification obligations

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction of Saudi courts

13. Notice Provisions: Methods and addresses for official communications between parties

14. Execution: Signature requirements and execution formalities under Saudi law

What sections are optional to include in a Limited License Agreement?

1. Quality Control: Include when licensing involves products or services requiring specific quality standards

2. Technology Transfer: Required when the license includes transfer of technical knowledge or know-how

3. Training and Support: Include when the licensor must provide technical support or training

4. Export Control: Necessary for licenses involving cross-border technology or product transfer

5. Shariah Compliance: Detailed section required when financial arrangements need explicit Shariah compliance provisions

6. Data Protection: Include when the licensed material involves personal data processing

7. Source Code Escrow: Required for software licenses where source code protection is crucial

8. Force Majeure: Optional but recommended for long-term licenses to address unforeseen circumstances

9. Insurance: Include when specific insurance coverage is required for licensed activities

10. Competition Compliance: Required when license terms might affect market competition

What schedules should be included in a Limited License Agreement?

1. Schedule 1 - Licensed Material: Detailed description of the licensed intellectual property, technology, or materials

2. Schedule 2 - Technical Specifications: Technical requirements, standards, and specifications for the licensed material

3. Schedule 3 - Fee Schedule: Detailed breakdown of license fees, royalties, and payment terms

4. Schedule 4 - Service Levels: Performance standards and metrics if applicable

5. Schedule 5 - Compliance Requirements: Specific regulatory or technical compliance requirements

6. Appendix A - Required Approvals: List of necessary governmental or regulatory approvals

7. Appendix B - Territory Definition: Detailed description of geographical scope of the license

8. Appendix C - Quality Standards: Specific quality control requirements and standards

9. Appendix D - Report Ƶ: Ƶ for required periodic reports or notifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions




































Clauses




































Relevant Industries

Information Technology

Software Development

Manufacturing

Telecommunications

Healthcare

Biotechnology

Oil and Gas

Financial Services

Education

Research and Development

Pharmaceutical

Entertainment and Media

Industrial Engineering

Automotive

Consumer Electronics

Relevant Teams

Legal

Intellectual Property

Compliance

Commercial

Technical Operations

Research and Development

Business Development

Finance

Information Technology

Product Development

Risk Management

Corporate Strategy

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Director

Commercial Director

Chief Technology Officer

Compliance Officer

Business Development Manager

Contract Manager

Technology Transfer Officer

Research and Development Director

Chief Executive Officer

Innovation Manager

General Counsel

Operations Director

Technical Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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