Manufacturing License Agreement for Germany

Manufacturing License Agreement Template for Germany

A Manufacturing License Agreement governed by German law is a comprehensive legal document that establishes the terms and conditions under which one party (the licensor) grants another party (the licensee) the right to manufacture specific products using the licensor's intellectual property, technology, or know-how. The agreement incorporates provisions compliant with German commercial and intellectual property law, including the German Civil Code (BGB) and Patent Act (PatG), while addressing quality control requirements, technical support, royalty payments, and manufacturing standards. It includes specific provisions for protecting intellectual property rights, maintaining quality standards, and ensuring compliance with German manufacturing regulations and EU directives.

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What is a Manufacturing License Agreement?

The Manufacturing License Agreement is essential for businesses seeking to expand their manufacturing capabilities through licensed technology or intellectual property rights. This contract type is particularly relevant in the German market, where strict quality standards and regulatory compliance are paramount. It is commonly used when a company wishes to authorize another entity to manufacture its products while maintaining control over quality, technical specifications, and brand reputation. The agreement must comply with German legal requirements, including the German Civil Code (BGB), Patent Act (PatG), and relevant EU regulations. It typically includes detailed provisions for technical support, quality control procedures, royalty calculations, and intellectual property protection. This document is crucial for international technology transfers, domestic manufacturing partnerships, and cross-border industrial collaborations where German law governs the relationship.

What sections should be included in a Manufacturing License Agreement?

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, including brief description of the licensed technology/products and parties' business relationship

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Technical Information, Licensed Products, Territory, etc.

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

5. Technical Information and Support: Details of technical documentation, know-how, and support to be provided by licensor

6. Quality Control and Standards: Manufacturing standards, quality control procedures, and compliance requirements

7. Intellectual Property Rights: Ownership of IP, improvements, and new developments during the agreement term

8. Payment Terms: License fees, royalties, payment schedules, and calculation methods

9. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Representations: Parties' warranties regarding IP rights, authority to contract, and product quality

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Term and Termination: Duration of agreement, renewal provisions, and termination rights

14. Post-Termination Obligations: Obligations surviving termination and wind-down procedures

15. Governing Law and Jurisdiction: German law as governing law and jurisdiction for dispute resolution

16. General Provisions: Standard boilerplate clauses including assignment, severability, and entire agreement

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

1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties

2. Export Control: Include for products subject to export restrictions or international trade regulations

3. Environmental Compliance: Include for manufacturing processes with significant environmental impact

4. Marketing and Branding: Include when licensee has rights to use licensor's trademarks or brand assets

5. Minimum Performance Requirements: Include when agreement includes minimum production or sales targets

6. Insurance Requirements: Include when specific insurance coverage is required for manufacturing operations

7. Employee Training: Include when licensor must provide specific training to licensee's personnel

8. Research and Development: Include when parties will collaborate on product improvements or new developments

What schedules should be included in a Manufacturing License Agreement?

1. Schedule 1 - Licensed Products: Detailed specifications and descriptions of products covered by the license

2. Schedule 2 - Technical Documentation: List of all technical information, drawings, and specifications to be provided

3. Schedule 3 - Quality Standards: Detailed quality control procedures and acceptance criteria

4. Schedule 4 - Royalty Calculations: Detailed methodology for calculating royalties and examples

5. Schedule 5 - Manufacturing Facility Requirements: Specifications for manufacturing facilities and equipment

6. Appendix A - Form of Quality Control Report: Template for required quality control reporting

7. Appendix B - Technical Support Services: Details of technical support services to be provided by licensor

8. Appendix C - Approved Sub-contractors: List of pre-approved sub-contractors (if applicable)

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

Germany

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Automotive Manufacturing

Electronics Manufacturing

Pharmaceutical Production

Chemical Manufacturing

Industrial Equipment

Consumer Goods

Aerospace and Defense

Medical Devices

Food and Beverage Processing

Textiles and Apparel

Relevant Teams

Legal

Operations

Manufacturing

Quality Control

Research and Development

Intellectual Property

Compliance

Technical Operations

Business Development

Production

Engineering

Relevant Roles

Chief Technology Officer

Manufacturing Director

Legal Counsel

Intellectual Property Manager

Quality Control Manager

Operations Director

Licensing Manager

Production Manager

Compliance Officer

Contract Manager

Technical Director

Business Development Manager

Chief Operating Officer

Manufacturing Engineer

IP Counsel

Industries
German Civil Code (Bürgerliches Gesetzbuch - BGB): Fundamental law governing contracts, including formation, performance, breach, and remedies. Sections 305-310 specifically deal with standard business terms.
German Commercial Code (Handelsgesetzbuch - HGB): Governs commercial relationships between businesses, including specific provisions for commercial contracts and business operations.
German Patent Act (Patentgesetz - PatG): Regulates patent rights and their exploitation, including licensing of manufacturing rights and patent protection.
Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb - UWG): Ensures fair competition and regulates restrictive practices in licensing agreements.
German Act Against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen - GWB): Antitrust law governing competitive aspects of licensing agreements and potential market restrictions.
Product Liability Act (Produkthaftungsgesetz - ProdHaftG): Regulates liability for defective products, crucial for manufacturing agreements.
EU Technology Transfer Block Exemption Regulation (TTBER): EU regulation applicable in Germany, providing antitrust exemptions for certain technology transfer agreements.
German Trade Secret Act (Geschäftsgeheimnisgesetz - GeschGehG): Protects confidential business information and know-how in manufacturing processes.
German Data Protection Act (Bundesdatenschutzgesetz - BDSG): Governs the processing of personal data, relevant for any data exchange in the manufacturing process.
Industrial Safety Regulation (Betriebssicherheitsverordnung - BetrSichV): Sets standards for safety in manufacturing operations and equipment use.
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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