The Royalty Non-Exclusive License agreement is a crucial document in intellectual property commercialization under Indian law. It is typically used when an IP owner wishes to monetize their intellectual property while retaining the right to license it to multiple parties. This agreement is particularly relevant in scenarios involving technology transfer, software licensing, patent utilization, or content distribution within the Indian market or involving Indian entities. The document addresses key aspects required by Indian legislation, including the Indian Contract Act, relevant IP laws, and tax regulations. It provides detailed frameworks for royalty calculations, payment mechanisms, and compliance requirements while offering flexibility in terms of territory and scope of use. This type of agreement is commonly used in cross-border transactions where Indian companies are either licensing their IP or acquiring licenses from foreign entities, requiring careful consideration of both domestic and international legal requirements.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement, including description of the IP and parties' objectives
3. Definitions: Detailed definitions of terms used throughout the agreement
4. License Grant: Scope, nature, and limitations of the non-exclusive license
5. Territory and Term: Geographical scope and duration of the license
6. Royalty and Payment Terms: Royalty rates, calculation methods, payment schedules, and reporting requirements
7. Licensee Obligations: Core responsibilities of the licensee including quality control and usage restrictions
8. Licensor Obligations: Core responsibilities of the licensor including IP maintenance
9. IP Ownership and Protection: Confirmation of IP ownership and measures for protection
10. Representations and Warranties: Standard warranties about IP ownership, right to license, and non-infringement
11. Indemnification: Mutual indemnification obligations for various risks
12. Confidentiality: Protection of confidential information exchanged during the relationship
13. Term and Termination: Duration, renewal, and grounds for termination
14. Post-Termination Obligations: Rights and obligations that survive termination
15. Governing Law and Dispute Resolution: Choice of Indian law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including notices, assignment, and amendment procedures
1. Technical Support and Training: Include when the licensor needs to provide technical assistance or training
2. Quality Control: Required for trademark licenses or when product quality standards must be maintained
3. Improvements and Modifications: Include when either party may develop improvements to the licensed IP
4. Export Control: Required when the license involves cross-border activities
5. Sub-licensing Rights: Include if sub-licensing is permitted
6. Audit Rights: Include for complex royalty calculations or when significant revenues are involved
7. Insurance: Include when specific insurance coverage is required
8. Competition Law Compliance: Required when license terms could impact market competition
9. Foreign Exchange Compliance: Include for international licensing arrangements
1. Schedule A - Licensed IP: Detailed description of the intellectual property being licensed
2. Schedule B - Royalty Calculations: Detailed formulas and examples of royalty calculations
3. Schedule C - Reporting Template: Format for regular royalty reports and sales documentation
4. Schedule D - Quality Standards: Technical specifications and quality requirements
5. Schedule E - Territory Definition: Detailed description of licensed territories if complex
6. Schedule F - Technical Support Terms: Details of support services if provided
7. Appendix 1 - Contact Details: Key contacts for both parties for various purposes
8. Appendix 2 - Approved Sub-licensees: List of pre-approved sub-licensees if applicable
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