License Agreement Template for the Philippines

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What is a License Agreement?

A License Agreement lets someone use another party's property, rights, or intellectual assets under specific terms. In the Philippines, these contracts commonly cover software, technology, trademarks, and creative works protected under the Intellectual Property Code (Republic Act No. 8293).

The agreement spells out key details like payment terms, allowed uses, time limits, and territorial boundaries. It protects both sides - giving the owner control over their assets while letting users legally access and benefit from them. Filipino businesses often need these agreements to use foreign technology or to monetize their own intellectual property locally.

Frequently Asked Questions

When should you use a License Agreement?

Use a License Agreement when letting others access or use your intellectual property in the Philippines. This includes situations like launching a franchise, selling software subscriptions, or allowing someone to manufacture products using your patented design. It's especially important for tech companies, content creators, and businesses expanding through licensing models.

Filipino businesses need these agreements when partnering with international firms to use their technology, or when local companies want to monetize their innovations. The agreement becomes crucial before sharing trade secrets, proprietary methods, or creative works - it prevents unauthorized use while creating clear revenue streams through royalties or fees.

What are the different types of License Agreement?

Who should typically use a License Agreement?

  • Software Companies: Draft and issue License Agreements to protect their intellectual property while allowing customers to use their products legally in the Philippine market
  • Content Creators: Use these agreements to monetize their work and control how others can use their creative content
  • Legal Departments: Review and customize agreements to ensure compliance with Philippine IP laws and protect company interests
  • Business Owners: Sign as licensees to gain legal access to necessary software, technology, or intellectual property
  • IP Rights Holders: Create licensing terms to maintain control while generating revenue from their intellectual assets

How do you write a License Agreement?

  • Identify IP Details: List all intellectual property being licensed, including patents, trademarks, or software versions registered in the Philippines
  • Define Usage Terms: Specify exactly how the licensee can use the IP, including territorial limits and duration
  • Set Payment Structure: Determine royalty rates, fixed fees, or payment schedules that align with local market standards
  • Outline Restrictions: Document any limitations on sublicensing, modifications, or transfer rights
  • Use Our Platform: Generate a customized License Agreement that automatically includes all required elements under Philippine law, reducing drafting errors

What should be included in a License Agreement?

  • Identification Details: Full legal names and addresses of licensor and licensee under Philippine law
  • Grant of License: Clear description of licensed IP and specific rights being transferred
  • Usage Terms: Detailed scope of permitted use, territory coverage, and duration
  • Financial Terms: Payment structure, royalty calculations, and due dates compliant with local regulations
  • Termination Clauses: Conditions for ending the agreement and post-termination obligations
  • Dispute Resolution: Philippine jurisdiction and applicable dispute settlement procedures
  • Warranties: IP ownership guarantees and infringement protections under RA 8293

What's the difference between a License Agreement and an Assignment Agreement?

A License Agreement differs significantly from an Assignment Agreement in several key aspects under Philippine law. While both deal with intellectual property rights, their core purposes and effects are distinct.

  • Ownership Transfer: License Agreements maintain the original owner's rights while allowing specific uses, but Assignment Agreements permanently transfer all ownership rights to the assignee
  • Duration: Licenses typically have defined time periods and can be revoked, while assignments are permanent transfers
  • Control Rights: Licensors retain control over how their IP is used and can license to multiple parties, whereas assignors give up all control rights
  • Payment Structure: Licenses usually involve ongoing royalties or periodic fees, while assignments often have one-time payment arrangements
  • Legal Obligations: License Agreements require continuous monitoring of usage terms, but Assignment Agreements end the original owner's responsibilities after transfer

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

Swetha Meenal profile photo

A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Philippines

Publisher

GenieAI

Cost

Free to use

Last updated

About the License Agreement

  • Identify IP Details: List all intellectual property being licensed, including patents, trademarks, or software versions registered in the Philippines
  • Define Usage Terms: Specify exactly how the licensee can use the IP, including territorial limits and duration
  • Set Payment Structure: Determine royalty rates, fixed fees, or payment schedules that align with local market standards
  • Outline Restrictions: Document any limitations on sublicensing, modifications, or transfer rights
  • Use Our Platform: Generate a customized License Agreement that automatically includes all required elements under Philippine law, reducing drafting errors

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