Character License Agreement for Switzerland

Character License Agreement Template for Switzerland

A Character License Agreement under Swiss law is a comprehensive legal document that governs the licensing of intellectual property rights related to fictional characters. It establishes the terms and conditions under which a licensee may use, reproduce, and commercialize a character owned by the licensor. The agreement complies with Swiss federal laws, including the Swiss Federal Copyright Act (URG) and the Swiss Code of Obligations, and typically covers aspects such as license scope, territory, royalty payments, quality control, and approval processes. This document is crucial for protecting the intellectual property rights of character owners while enabling commercial exploitation across various media and merchandise.

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What is a Character License Agreement?

The Character License Agreement is a vital legal instrument used when the owner of a fictional character wishes to grant another party the right to use, reproduce, or commercialize their intellectual property. This agreement type is particularly relevant in Switzerland, where strong intellectual property protection exists under the Swiss Federal Copyright Act and related legislation. It's commonly used for licensing characters for various purposes including merchandise production, media adaptations, or digital content creation. The document typically includes detailed provisions on permitted uses, quality control measures, financial terms, and territorial restrictions. Character License Agreements are essential for businesses looking to capitalize on popular characters while ensuring proper protection of the original creator's rights and maintaining character integrity across different platforms and products.

What sections should be included in a Character License Agreement?

1. Parties: Identification of the licensor and licensee with full legal details

2. Background: Context of the agreement, description of the character(s), and ownership confirmation

3. Definitions: Detailed definitions of key terms including Licensed Character, Territory, Licensed Products, Net Sales, etc.

4. Grant of Rights: Scope of license, territorial limits, and permitted uses of the character

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

6. Financial Terms: License fees, royalties, payment terms, and reporting requirements

7. Quality Control: Standards for character use, approval processes, and quality maintenance requirements

8. Protection of Rights: IP protection measures, registration requirements, and infringement procedures

9. Representations and Warranties: Parties' assurances regarding rights, authority, and non-infringement

10. Confidentiality: Protection of confidential information exchanged during the agreement

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

12. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

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

1. Sublicensing Rights: Include when licensee is permitted to sublicense the character to third parties

2. Merchandise Development: Include for agreements involving product manufacturing and merchandising

3. Digital Rights: Include when the license covers digital/online use of the character

4. Creative Control: Include when specific creative guidelines or approval processes are needed

5. Marketing and Promotion: Include when specific marketing requirements or restrictions apply

6. Moral Rights: Include when moral rights considerations are relevant under Swiss law

7. Co-Branding: Include when the character will be used alongside other brands

8. Exclusivity Provisions: Include when granting exclusive rights in certain territories or categories

What schedules should be included in a Character License Agreement?

1. Schedule A - Character Description: Detailed description and visual representation of the licensed character(s)

2. Schedule B - Licensed Products: List of approved products/services for character use

3. Schedule C - Style Guide: Visual guidelines and specifications for character usage

4. Schedule D - Territory: Detailed description of licensed territories and any restrictions

5. Schedule E - Royalty Rates: Detailed breakdown of royalty rates by product category/territory

6. Schedule F - Approval Procedures: Detailed procedures for obtaining approval for character use

7. Appendix 1 - Character Artwork: Official artwork and assets provided for licensed use

8. Appendix 2 - Quality Standards: Detailed quality requirements for licensed products/services

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Licensing Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Media & Entertainment

Publishing

Gaming

Merchandising

Retail

Digital Media

Fashion & Apparel

Toys & Games

Licensing & Franchising

Software & Technology

Relevant Teams

Legal

Intellectual Property

Commercial

Licensing

Business Development

Brand Management

Product Development

Creative

Merchandising

Content Acquisition

Relevant Roles

Licensing Manager

IP Rights Manager

Legal Counsel

Commercial Director

Brand Manager

Creative Director

Business Development Manager

Contract Administrator

Merchandising Manager

Content Acquisition Manager

Rights and Clearance Specialist

Product Development Manager

Franchise Manager

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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