Under Licence Agreement Template for the United Arab Emirates

An Under Licence Agreement is a crucial legal document that allows you to grant or receive rights to use intellectual property, technology, or other proprietary assets while the original owner retains ownership. In the United Arab Emirates, these agreements must comply with specific federal laws and commercial regulations to ensure enforceability and protect all parties involved.

When do you need this document?

You need an Under Licence Agreement when licensing technology to UAE distributors, granting trademark rights to local manufacturers, or allowing franchisees to use your business methods and branding. International companies entering the UAE market often require these agreements to work with local partners while maintaining control over their intellectual property. The document is essential when establishing software licensing arrangements, permitting the use of patented processes, or authorizing the reproduction and distribution of copyrighted materials within UAE territory.

Key legal considerations

Your agreement must clearly define the scope of licensed rights, including territorial limitations, exclusivity provisions, and permitted uses to avoid disputes. Payment structures require careful attention, covering royalty rates, minimum guarantees, and currency considerations under UAE banking regulations. Quality control clauses are essential to protect your brand reputation and maintain compliance with UAE consumer protection laws. The agreement should address termination conditions, breach remedies, and post-termination obligations to ensure comprehensive protection. Intellectual property warranties and indemnification provisions protect against third-party claims and unauthorized use beyond the agreed scope.

Legal requirements in United Arab Emirates

UAE Federal Law No. 8 of 2002 (Commercial Companies Law) governs the commercial aspects of licensing arrangements and may require local agency appointments for certain business activities. The UAE Trademark Law (Federal Law No. 37 of 1992) mandates specific procedures for trademark licensing and registration requirements. Copyright licensing must comply with Federal Law No. 7 of 2002, which protects creative works and establishes licensing parameters. Patent licensing agreements fall under Federal Law No. 31 of 2006, requiring compliance with patent registration and exploitation rules. Your agreement must also consider UAE Competition Law (Federal Law No. 4 of 2012) to avoid anti-competitive practices and ensure fair market access. Additionally, certain licensing arrangements may require approval from relevant UAE authorities, and all agreements must comply with Shariah principles where applicable to ensure enforceability in UAE courts.