Royalty License for United Arab Emirates

Royalty License Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions under which one party (the licensor) grants another party (the licensee) the right to use specific intellectual property in exchange for royalty payments. The document incorporates UAE federal laws on intellectual property, commercial transactions, and corporate taxation, ensuring compliance with local regulations while facilitating international business practices. It details payment terms, usage rights, quality control measures, and reporting requirements, with specific provisions adapted to UAE business and legal requirements.

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What is a Royalty License?

This Royalty License Agreement template is designed for use in the United Arab Emirates, incorporating requirements from UAE federal laws on intellectual property, commercial transactions, and taxation. The document is essential when one party wishes to grant another the right to use its intellectual property (such as trademarks, patents, or copyrighted material) in exchange for royalty payments. It includes comprehensive provisions for payment terms, quality control, reporting requirements, and dispute resolution mechanisms that align with UAE legal standards. The agreement is particularly relevant given the UAE's growing role as a global business hub and its recent modernization of IP laws. This Royalty License template ensures compliance with local regulations while facilitating international business practices, making it suitable for both domestic UAE transactions and cross-border licensing arrangements.

What sections should be included in a Royalty License?

1. Parties: Identification of the Licensor and Licensee with full legal names and addresses

2. Background: Context of the agreement, description of the intellectual property being licensed, and the parties' intentions

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Licensed Property', 'Territory', 'Royalties', and 'Net Sales'

4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and any field-of-use restrictions

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Royalty Payments: Detailed structure of royalty calculations, payment terms, currency, and payment methods compliant with UAE regulations

7. Reporting and Audit Rights: Requirements for sales reporting, record-keeping, and the licensor's audit rights

8. Quality Control: Standards and requirements for the use of the licensed property

9. Intellectual Property Protection: Obligations regarding IP protection, registration, and enforcement

10. Representations and Warranties: Standard warranties regarding ownership, right to license, and non-infringement

11. Termination: Grounds for termination, termination process, and post-termination obligations

12. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms

What sections are optional to include in a Royalty License?

1. Minimum Guarantee: Required when the parties agree to minimum royalty payments, specifying amounts and true-up mechanisms

2. Sub-licensing Rights: Include when the licensee is permitted to grant sub-licenses

3. Marketing and Promotion: Include when specific marketing obligations or restrictions apply

4. Technology Transfer: Required for licenses involving technical knowledge or know-how transfer

5. Export Control: Include for licenses involving regulated technologies or international trade

6. Insurance: Include when specific insurance requirements are needed for high-risk licenses

7. Competition Law Compliance: Include for licenses that might raise competition law concerns

8. Source Code Escrow: Include for software-related licenses where source code protection is required

What schedules should be included in a Royalty License?

1. Schedule 1 - Licensed Property: Detailed description of the intellectual property being licensed, including registration numbers

2. Schedule 2 - Royalty Rates: Detailed breakdown of royalty rates, including any tiered structure

3. Schedule 3 - Territory: Detailed description of the geographic territory covered by the license

4. Schedule 4 - Quality Control Standards: Specific quality control requirements and procedures

5. Schedule 5 - Reporting Template: Template for regular royalty reports and sales statements

6. Schedule 6 - Approved Sub-licensees: List of pre-approved sub-licensees (if applicable)

7. Appendix A - Brand Guidelines: Guidelines for use of licensed trademarks or branding

8. Appendix B - Technical Specifications: Technical requirements or specifications for licensed technology

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 and Software

Media and Entertainment

Manufacturing

Retail and Consumer Goods

Pharmaceuticals and Healthcare

Fashion and Luxury Goods

Food and Beverage

Automotive

Energy and Resources

Telecommunications

Education and Training

Research and Development

Relevant Teams

Legal

Intellectual Property

Finance

Commercial

Business Development

Compliance

Technical Operations

Research and Development

Brand Management

Treasury

Corporate Affairs

International Business

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Licensing Manager

Business Development Manager

Chief Financial Officer

Compliance Officer

Contract Manager

Chief Legal Officer

Chief Technology Officer

Brand Manager

Finance Director

Head of Partnerships

Innovation 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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