Data License Agreement for Hong Kong

Data License Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions under which one party (the licensor) grants another party (the licensee) the right to use, access, and process specific data sets. The agreement addresses key aspects including data usage rights, restrictions, privacy compliance under Hong Kong's Personal Data (Privacy) Ordinance, intellectual property rights, security requirements, and commercial terms. It provides a framework for secure and compliant data sharing while protecting both parties' interests under Hong Kong's legal system.

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What is a Data License Agreement?

A Data License Agreement is essential for organizations engaging in data sharing or commercialization activities in Hong Kong. This document is particularly relevant in today's data-driven business environment where companies increasingly rely on external data sources for their operations, analytics, or service delivery. The agreement must comply with Hong Kong's legal framework, particularly the Personal Data (Privacy) Ordinance (Cap. 486) and relevant intellectual property laws. It should be used whenever an organization wishes to formally license data to another party, whether for commercial purposes, research, or operational needs. The agreement typically includes detailed provisions on data usage rights, privacy compliance, security measures, commercial terms, and liability allocation, tailored to Hong Kong's regulatory requirements and business practices.

What sections should be included in a Data License Agreement?

1. Parties: Identification of the licensor and licensee, including full legal names, registration details, and addresses

2. Background: Context of the agreement, nature of the data, and general purpose of the licensing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Data', 'Intellectual Property Rights', 'Permitted Purpose', and 'Confidential Information'

4. License Grant: Scope of the license, including permitted uses, restrictions, and whether the license is exclusive or non-exclusive

5. Data Delivery and Format: Specifications for how and when the data will be delivered, including format requirements and delivery mechanisms

6. License Fees and Payment Terms: Financial terms, payment schedule, and any usage-based fee calculations

7. Data Protection and Security: Obligations regarding data security, compliance with PDPO, and data handling requirements

8. Intellectual Property Rights: Ownership of IP rights, restrictions on use, and protection of proprietary rights

9. Confidentiality: Obligations regarding confidential information and data security

10. Warranties and Representations: Warranties regarding data quality, accuracy, and compliance with laws

11. Limitation of Liability: Limitations on liability and indemnification provisions

12. Term and Termination: Duration of the agreement, renewal terms, and termination rights

13. Post-Termination Obligations: Requirements for data deletion or return upon termination

14. General Provisions: Standard boilerplate clauses including governing law, dispute resolution, and entire agreement

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

1. Audit Rights: Rights to audit licensee's use of data and compliance with agreement terms - include when dealing with sensitive or regulated data

2. Data Updates and Maintenance: Terms for ongoing data updates and maintenance - include when the license involves dynamic or regularly updated data

3. Sub-licensing Rights: Terms governing the licensee's right to sub-license the data - include when sub-licensing is permitted

4. Territory Restrictions: Geographic limitations on data use - include for international licensing arrangements

5. Data Quality Standards: Specific quality metrics and standards - include when data quality is critical to the use case

6. Service Levels: Performance metrics for data delivery and availability - include for real-time or critical data services

7. Change Control: Process for managing changes to data format or delivery - include for complex or long-term arrangements

What schedules should be included in a Data License Agreement?

1. Schedule 1 - Licensed Data Description: Detailed technical specifications of the licensed data, including format, fields, and structure

2. Schedule 2 - Fee Schedule: Detailed breakdown of license fees, payment terms, and calculation methodologies

3. Schedule 3 - Technical Requirements: Technical specifications for data delivery, access methods, and security requirements

4. Schedule 4 - Service Levels: Detailed service level requirements and metrics, if applicable

5. Schedule 5 - Permitted Purpose and Use Cases: Detailed description of authorized uses and specific use case limitations

6. Appendix A - Data Security Requirements: Specific security protocols and requirements for data handling

7. Appendix B - Form of Reports: Templates for required reporting on data usage or compliance

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Cost

Free to use

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Data License Agreement

A Hong Kong law-governed agreement establishing terms for licensed data usage, including privacy compliance, security requirements, and commercial terms.

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