License Back Agreement for Hong Kong

License Back Agreement Template for Hong Kong

A License Back Agreement under Hong Kong law is a specialized contract where a party that has transferred or assigned intellectual property rights to another entity receives a license to continue using those rights under specified terms and conditions. This agreement is governed by Hong Kong's intellectual property laws, including the Patents Ordinance (Cap. 514) and Copyright Ordinance (Cap. 528), and follows Hong Kong's common law principles. The document outlines the scope of the license, usage rights, territorial restrictions, payment terms, and obligations of both parties while ensuring compliance with Hong Kong's competition laws and regulatory requirements.

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What is a License Back Agreement?

The License Back Agreement is a crucial document used in situations where a company or individual has transferred ownership of intellectual property but needs to retain certain usage rights. Common in technology transfers, corporate restructuring, and joint venture arrangements, this agreement type is particularly relevant in Hong Kong's dynamic business environment, where international IP transactions are frequent. The document typically follows Hong Kong law and must comply with local IP regulations, including the Patents Ordinance and Copyright Ordinance. It specifies the scope of licensed rights, territorial restrictions, royalty arrangements, and quality control measures. This agreement is especially important in Hong Kong's technology and manufacturing sectors, where companies often need to balance IP ownership transfer with continued operational needs.

What sections should be included in a License Back Agreement?

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

2. Background: Context of the agreement, including reference to the original IP transfer or assignment that necessitates this license back arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including specific IP rights, territory, and technical terms

4. License Grant: Specific details of the license being granted back, including scope, territory, and whether exclusive or non-exclusive

5. Term and Termination: Duration of the license and circumstances under which it can be terminated

6. Payment Terms: Details of any royalties, fees, or other consideration for the license

7. IP Protection and Maintenance: Obligations regarding protection and maintenance of the licensed IP rights

8. Improvements and Modifications: Rights and obligations regarding improvements or modifications to the licensed IP

9. Confidentiality: Obligations to maintain confidentiality of sensitive information

10. Warranties and Representations: Standard warranties regarding IP ownership and right to license

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment

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

1. Quality Control: Required when the license involves trademarks or brand-related IP

2. Technical Support: Include when the licensor needs to provide technical assistance or knowledge transfer

3. Export Control: Required when the licensed IP is subject to export control regulations

4. Source Code Escrow: Include for software-related licenses where source code access might be necessary

5. Field of Use Restrictions: Include when the license back is limited to specific applications or industries

6. Sublicensing Rights: Include when sublicensing is permitted under specific conditions

7. Performance Obligations: Include when minimum usage or commercialization requirements are needed

8. Audit Rights: Include when verification of royalty payments or usage is required

What schedules should be included in a License Back Agreement?

1. Schedule 1 - Licensed IP: Detailed description of the intellectual property being licensed back

2. Schedule 2 - Technical Specifications: Technical details and specifications of the licensed technology

3. Schedule 3 - Royalty Calculations: Detailed methodology for calculating royalties or other payments

4. Schedule 4 - Quality Standards: Quality control requirements and standards for licensed products

5. Schedule 5 - Territory: Detailed description of the geographic territory covered by the license

6. Appendix A - Reporting Templates: Standard forms for usage reports and royalty calculations

7. Appendix B - Approval Procedures: Procedures for obtaining approvals for modifications or new uses

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

Hong Kong

Publisher

Genie AI

Document Type

Licensing Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Pharmaceuticals

Manufacturing

Telecommunications

Biotechnology

Software Development

Electronics

Automotive

Research and Development

Healthcare

Consumer Goods

Industrial Equipment

Relevant Teams

Legal

Intellectual Property

Research and Development

Technology Transfer

Business Development

Commercial

Licensing

Innovation

Corporate Development

Patents

Relevant Roles

Chief Technology Officer

IP Counsel

Legal Director

Head of Research and Development

Licensing Manager

Patent Attorney

Chief Legal Officer

Technology Transfer Officer

Innovation Director

Commercial Director

Head of Intellectual Property

Business Development Manager

Research Director

General Counsel

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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