Royalty License Agreement for Malta

Royalty License Agreement Template for Malta

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Royalty License Agreement

"I need a Royalty License Agreement for licensing our patented pharmaceutical manufacturing process to a Maltese manufacturer, with an exclusive territory covering the EU region and a tiered royalty structure based on annual sales volumes."

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What is a Royalty License Agreement?

This Royalty License Agreement template is designed for use under Maltese law when one party wishes to grant another party the right to use specific intellectual property in exchange for royalty payments. It is particularly relevant for businesses operating in or through Malta, taking advantage of the country's robust IP protection framework and its position within the EU. The agreement covers essential elements such as license scope, territory restrictions, royalty calculations, quality control measures, and compliance with both Maltese and EU regulations. It is suitable for various types of intellectual property, including patents, trademarks, copyrights, and trade secrets, and can be customized based on the specific IP being licensed and the commercial arrangement between the parties.

What sections should be included in a Royalty License Agreement?

1. Parties: Identifies and provides full details of the licensor and licensee, including registered addresses and company numbers

2. Background: Sets out the context of the agreement, ownership of the intellectual property, and the parties' intention to enter into a licensing arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Grant of License: Specifies the exact rights being granted, including scope, territory, and whether exclusive or non-exclusive

5. Term and Termination: Defines the duration of the agreement and circumstances under which it can be terminated

6. Royalty Payments: Details the royalty rates, calculation methods, payment terms, and reporting requirements

7. Intellectual Property Rights: Confirms ownership of IP rights and handles any improvements or modifications

8. Quality Control: Sets standards for the use of the licensed IP and monitoring mechanisms

9. Representations and Warranties: Contains promises and assurances from both parties regarding their rights and capabilities

10. Confidentiality: Protects confidential information exchanged during the course of the agreement

11. Record Keeping and Audit Rights: Specifies requirements for maintaining records and the licensor's audit rights

12. Governing Law and Jurisdiction: Establishes Maltese law as governing law and sets jurisdiction for disputes

13. General Provisions: Includes standard boilerplate clauses such as force majeure, notices, and assignment

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

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

2. Minimum Performance Requirements: Include when setting minimum sales or performance targets for the licensee

3. Technology Transfer: Include when technical knowledge or know-how needs to be transferred alongside the main IP rights

4. Marketing and Promotion: Include when specific marketing obligations or restrictions apply

5. Export Controls: Include when the licensed IP is subject to export control regulations

6. Source Code Escrow: Include for software licensing agreements where source code protection is needed

7. Training and Support: Include when the licensor must provide ongoing technical support or training

8. Insurance Requirements: Include when specific insurance coverage is required for the licensed activities

What schedules should be included in a Royalty License Agreement?

1. Schedule 1 - Licensed Intellectual Property: Detailed description of all IP being licensed, including registration numbers

2. Schedule 2 - Royalty Calculations: Detailed formulas and examples of royalty calculations

3. Schedule 3 - Quality Control Standards: Specific quality standards and testing procedures

4. Schedule 4 - Reporting Template: Template for regular royalty reports and sales information

5. Schedule 5 - Territory: Detailed description of geographical territories covered by the license

6. Schedule 6 - Technical Specifications: Technical details and specifications for the licensed IP

7. Appendix A - Approved Product Forms: List of approved products or applications of the licensed IP

8. Appendix B - Brand Guidelines: Guidelines for using licensed trademarks or branding elements

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology

Software Development

Manufacturing

Entertainment

Media and Publishing

Pharmaceuticals

Biotechnology

Consumer Goods

Fashion and Luxury

Telecommunications

Gaming

Research and Development

Industrial Design

Music Industry

Film Industry

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Finance

Research and Development

Compliance

Technology

Innovation

Operations

Corporate Affairs

Licensing

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Director

Business Development Manager

Commercial Director

Chief Technology Officer

Research and Development Director

Finance Director

Compliance Officer

Contract Manager

Patent Attorney

Trademark Attorney

Technology Transfer Officer

Innovation Manager

Chief Executive Officer

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