Character Licence Agreement for the United Kingdom

Character Licence Agreement Template for England and Wales

A Character Licence Agreement is a legal document governed by English and Welsh law that establishes the terms under which a licensee may use a character owned by the licensor. It covers essential elements such as usage rights, territories, duration, quality control, royalty payments, and approval processes. The agreement ensures compliance with UK intellectual property laws, particularly the Copyright, Designs and Patents Act 1988 and the Trade Marks Act 1994, while protecting both parties' interests in the commercial exploitation of the character.

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What is a Character Licence Agreement?

A Character Licence Agreement is essential when one party wishes to grant another the right to use and commercially exploit a character in specific ways. This agreement, governed by English and Welsh law, typically covers territorial scope, permitted uses, quality standards, approval processes, and financial terms. It's particularly important in protecting intellectual property rights while enabling commercial exploitation across various media and merchandise. The agreement ensures compliance with UK copyright and trademark laws while providing clear guidelines for character usage and brand protection.

What sections should be included in a Character Licence Agreement?

1. Parties: Identification and details of the licensor and licensee

2. Background: Context of the agreement and ownership declaration of the licensed character

3. Definitions: Key terms used throughout the agreement including Licensed Character, Territory, Term, Licensed Products

4. Grant of Rights: Scope of licence, territory, and duration of the character licence

5. Payments: Royalty rates, payment terms, and reporting requirements

6. Quality Control: Standards for character use and approval processes

7. Intellectual Property Protection: Rights protection and infringement procedures

8. Term and Termination: Duration and termination provisions

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

1. Minimum Guarantees: Minimum royalty payments required, used for valuable character properties

2. Sub-licensing Rights: Rights to grant sub-licenses to third parties for character usage

3. Marketing Commitments: Minimum marketing spend and activities for character promotion

What schedules should be included in a Character Licence Agreement?

1. Schedule 1 - Character Specifications: Detailed description and artwork of licensed character

2. Schedule 2 - Style Guide: Guidelines for character usage and brand standards

3. Schedule 3 - Licensed Products: List of approved products for character use

4. Schedule 4 - Territory Schedule: Detailed breakdown of licensed territories

5. Schedule 5 - Royalty Rates: Detailed breakdown of royalty calculations and categories

6. Schedule 6 - Approval Procedures: Step-by-step process for obtaining licensor approval

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

England and Wales

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Copyright, Designs and Patents Act 1988: Primary UK legislation governing copyright protection, including provisions for original artistic works, moral rights, duration of protection, and rules for assignment and licensing of rights

Trade Marks Act 1994: Key legislation for protection of character names and logos, including trademark licensing provisions, use restrictions and quality control requirements

Common Law Rights - Passing Off: Common law protection against misrepresentation of character ownership and unauthorized use, particularly relevant for character merchandising rights

Consumer Rights Act 2015: Relevant when licensed characters are used in consumer products, ensuring consumer protection compliance

Competition Act 1998: Ensures licensing terms comply with competition law, particularly regarding territory restrictions and market dominance

Contracts (Rights of Third Parties) Act 1999: Governs how third party rights are handled in contractual agreements, including character licensing

Data Protection Act 2018 and UK GDPR: Relevant when character licensing involves processing of personal data or user information

Berne Convention: International treaty providing copyright protection across member states, ensuring international recognition of character rights

Madrid Protocol: International system for trademark registration, important for protecting character marks internationally

EU Trade Mark Regulations: Post-Brexit considerations for character trademark protection in the EU, including existing rights and future registrations

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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