Non Transferable License for United Arab Emirates

Non Transferable License Template for United Arab Emirates

A Non-Transferable License agreement under UAE law is a legally binding document that grants specific usage rights to a licensee while explicitly prohibiting the transfer of these rights to any third party. The agreement is governed by UAE federal laws, particularly Federal Law No. 5 of 1985 (Civil Code) and relevant intellectual property legislation. This document establishes clear terms for the license grant, usage restrictions, payment terms, and compliance requirements while ensuring alignment with UAE's civil law system and commercial practices. It includes specific provisions for protecting the licensor's intellectual property rights while providing the licensee with clearly defined usage rights within the UAE legal framework.

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What is a Non Transferable License?

The Non-Transferable License agreement is essential for businesses operating in the UAE who wish to grant limited usage rights while maintaining strict control over their intellectual property or proprietary assets. This document type is commonly used when a rights holder (licensor) wants to permit another party (licensee) to use specific intellectual property, technology, or proprietary content while ensuring these rights cannot be transferred, assigned, or sublicensed to others. The agreement must comply with UAE federal laws, including intellectual property legislation and the Civil Code, and typically includes detailed terms regarding usage scope, territorial restrictions, duration, payment terms, and termination rights. It's particularly relevant in situations where protecting proprietary rights and maintaining control over distribution channels is crucial, such as in technology licensing, software distribution, or brand licensing arrangements within the UAE market.

What sections should be included in a Non Transferable License?

1. Parties: Identification and details of the Licensor and Licensee, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, brief description of the licensed material/property, and purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Licensed Material, Territory, Term, etc.

4. Grant of License: Explicit terms of the license grant, including scope, territory, and clear statement of non-transferability

5. License Restrictions: Specific restrictions on the use of the licensed material, including prohibition on transfer, sublicensing, and other limitations

6. License Fee and Payment Terms: Details of license fees, payment schedule, payment method, and consequences of late payment

7. Intellectual Property Rights: Confirmation of ownership rights, protection of IP, and handling of improvements or derivatives

8. Licensee Obligations: Specific duties and responsibilities of the Licensee in using the licensed material

9. Term and Termination: Duration of the license, renewal provisions, and grounds for termination

10. Confidentiality: Obligations regarding confidential information exchanged during the license period

11. Warranties and Representations: Warranties provided by both parties, particularly regarding ownership and right to license

12. Liability and Indemnification: Limitation of liability provisions and indemnification obligations

13. Governing Law and Dispute Resolution: Specification of UAE law as governing law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments

What sections are optional to include in a Non Transferable License?

1. Quality Control: Required when licensing involves products or services that need to maintain certain quality standards

2. Technical Support: Include when the license requires ongoing technical support or maintenance services

3. Training: Necessary when the licensed material requires specific training for proper use

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

5. Export Control: Required when the licensed material may be subject to export control regulations

6. Source Code Escrow: Include for software licenses where source code protection is required

7. Performance Metrics: Include when the license is tied to specific performance requirements or targets

8. Audit Rights: Include when the licensor needs rights to audit the licensee's use of the licensed material

What schedules should be included in a Non Transferable License?

1. Schedule 1 - Licensed Material: Detailed description and specifications of the licensed material/property

2. Schedule 2 - License Fees: Detailed breakdown of all applicable fees, payment schedules, and calculation methods

3. Schedule 3 - Technical Specifications: Technical requirements, specifications, and standards for the licensed material

4. Schedule 4 - Service Levels: Service level requirements and metrics, if applicable

5. Schedule 5 - Approved Use Cases: Specific approved uses and applications of the licensed material

6. Appendix A - Contact Details: Key contact persons and their details for both parties

7. Appendix B - Reporting Requirements: Templates and requirements for any required reporting

8. Appendix C - Change Control Procedure: Process for managing changes to the licensed material or agreement terms

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Software Development

Manufacturing

Pharmaceuticals

Healthcare

Media and Entertainment

Telecommunications

Education

Research and Development

Energy

Financial Services

Professional Services

Retail

Automotive

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Compliance

Operations

Technology

Research and Development

Finance

Risk Management

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Director

Commercial Director

Chief Technology Officer

Business Development Manager

Contracts Manager

Compliance Officer

Chief Legal Officer

Technology Transfer Manager

IP Rights Manager

Partnership Manager

General Counsel

Operations 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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