Non Exclusive License Agreement Template for the United Arab Emirates

A Non Exclusive License Agreement allows you to grant rights to use your intellectual property while retaining the freedom to license the same rights to other parties. Under UAE law, this document serves as a legally binding contract that protects both your interests as a licensor and defines the permitted uses for the licensee, ensuring compliance with local intellectual property regulations.

When do you need this document?

You need this agreement when licensing software, technology, trademarks, or copyrighted materials to multiple parties simultaneously. It's essential for technology companies expanding into the UAE market, content creators licensing their work to local distributors, or patent holders allowing multiple manufacturers to use their innovations. The agreement is particularly valuable in joint ventures, franchise arrangements, and when establishing distribution networks across the Emirates. Unlike exclusive licenses, this structure maximizes your revenue potential by allowing multiple licensees to operate in the same or different territories.

Key legal considerations

Your agreement must clearly define the scope of licensed rights, territorial limitations, and permitted uses to avoid disputes. Quality control provisions are crucial for maintaining your intellectual property's value and reputation. Payment terms should specify currency, schedule, and consequences for late payments, while termination clauses must outline grounds for ending the agreement and post-termination obligations. Consider including provisions for sublicensing rights, confidentiality requirements, and dispute resolution mechanisms. Warranty and indemnification clauses protect both parties from potential liability, and you should address how improvements or modifications to the licensed property will be handled.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 5 of 1985 (Civil Code), your license agreement must meet general contractual requirements including clear offer and acceptance, lawful consideration, and capacity of parties. UAE Federal Law No. 7 of 2002 (Copyright Law) governs licensing of copyrighted materials, requiring written agreements for exclusive or non-exclusive licenses exceeding one year. For patent licensing, UAE Federal Law No. 17 of 2002 (Industrial Property Rights) mandates registration of certain license agreements with relevant authorities. Commercial licensing arrangements must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law), particularly regarding payment terms and commercial practices. The agreement should be drafted in Arabic or include certified Arabic translation for enforceability, and consider UAE courts' jurisdiction for dispute resolution.