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Royalty Non Exclusive License

Royalty Non Exclusive License Template for Philippines

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Key Requirements PROMPT example:

Royalty Non Exclusive License

"I need a Royalty Non-Exclusive License agreement under Philippine law for licensing our patented manufacturing process to multiple manufacturers in Southeast Asia, with quarterly royalty payments of 5% of net sales, to be implemented by March 2025."

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Document background
The Royalty Non-Exclusive License agreement is essential for businesses and individuals seeking to monetize their intellectual property rights in the Philippines while maintaining flexibility in their licensing strategy. This document is particularly relevant when the IP owner wishes to generate revenue through multiple licensing arrangements without granting exclusive rights to any single party. The agreement must comply with Philippine intellectual property laws, including the Intellectual Property Code (Republic Act No. 8293) and the Technology Transfer Act (Republic Act No. 10055). It typically includes detailed provisions for royalty calculations, payment schedules, quality control measures, and reporting requirements. The non-exclusive nature of the license makes it especially suitable for scenarios where the IP owner wants to maximize market penetration through multiple licensees or maintain relationships with various commercial partners in different market segments or geographical areas.
Suggested Sections

1. Parties: Identification of the Licensor and Licensee with complete legal names and addresses

2. Background: Context of the agreement, description of the intellectual property, and parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including 'Licensed Property', 'Territory', 'Royalties', etc.

4. Grant of License: Explicit grant of non-exclusive license, scope of rights, and permitted uses

5. Territory: Geographic areas where the license can be exercised

6. Royalty Payments: Royalty rates, calculation methods, payment terms, currency, and reporting requirements

7. Records and Audit: Requirements for maintaining records and licensor's audit rights

8. Quality Control: Standards and requirements for use of the licensed property

9. Intellectual Property Protection: Provisions for maintaining and protecting the licensed IP rights

10. Term and Termination: Duration of the agreement and grounds for termination

11. Confidentiality: Protection of confidential information exchanged during the agreement

12. Warranties and Representations: Warranties regarding IP ownership, right to license, and non-infringement

13. Indemnification: Mutual indemnification obligations and procedures

14. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate provisions including notices, amendment process, and severability

Optional Sections

1. Sublicensing Rights: Include when sublicensing is permitted, specifying conditions and restrictions

2. Minimum Guarantees: Include when there are minimum royalty payments or performance requirements

3. Technology Transfer: Include when technical support or knowledge transfer is part of the agreement

4. Competition Compliance: Include when there are specific competition law concerns or requirements

5. Export Control: Include when the licensed property is subject to export control regulations

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

7. Source Code Escrow: Include for software licenses where source code access might be needed

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

Suggested Schedules

1. Schedule A - Licensed Property: Detailed description of the intellectual property being licensed

2. Schedule B - Royalty Rates: Detailed breakdown of royalty rates, calculation methods, and examples

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

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

5. Schedule E - Approved Sub-contractors: List of approved third parties for manufacturing or distribution

6. Appendix 1 - Technical Specifications: Technical details and specifications of the licensed property

7. Appendix 2 - 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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Affiliate
Applicable Law
Background IP
Commencement Date
Confidential Information
Effective Date
Field of Use
Foreground IP
Gross Revenue
Improvements
Initial Term
Intellectual Property Rights
Licensed Products
Licensed Property
Licensed Technology
Licensed Territory
Licensee
Licensor
Net Sales
Non-Exclusive License
Patent Rights
Quality Standards
Reporting Period
Royalty
Royalty Period
Royalty Rate
Sell-Off Period
Subsidiary
Technical Information
Term
Territory
Third Party
Trade Secrets
Trademarks
Working Day
Year
Technology Transfer
Commercial Use
Regulatory Approvals
Quality Control Standards
Minimum Performance Requirements
Licensed Methods
Know-How
Improvements
Gross Receipts
End User
Competing Products
Authorized Purpose
Clauses
Interpretation
Grant of License
Non-Exclusivity
Territory
Royalty Payments
Payment Terms
Records and Audit
Quality Control
IP Protection
IP Ownership
Confidentiality
Term and Duration
Termination
Warranties
Representations
Indemnification
Force Majeure
Assignment
Amendment
Notices
Governing Law
Dispute Resolution
Entire Agreement
Severability
Waiver
Performance Obligations
Reporting Requirements
Technical Support
Sub-licensing
Competition Compliance
Export Control
Insurance
Tax
Intellectual Property Rights
Technology Transfer
Regulatory Compliance
Marketing and Promotion
Third Party Rights
Further Assurance
Counterparts
Relevant Industries

Technology

Manufacturing

Software Development

Entertainment

Media & Broadcasting

Pharmaceuticals

Biotechnology

Consumer Goods

Automotive

Electronics

Fashion & Apparel

Research & Development

Education

Telecommunications

Relevant Teams

Legal

Intellectual Property

Finance

Business Development

Research and Development

Commercial Operations

Compliance

Technology Transfer

Innovation

Licensing Operations

Contract Administration

Relevant Roles

Intellectual Property Manager

Licensing Director

Chief Technology Officer

Legal Counsel

Commercial Director

Business Development Manager

Research Director

Technology Transfer Officer

Contract Manager

Chief Financial Officer

IP Commercialization Manager

Innovation Director

Patent Attorney

Royalty Accounting Manager

Compliance Officer

Industries
Intellectual Property Code of the Philippines (Republic Act No. 8293): Primary legislation governing intellectual property rights, including provisions for licensing, technology transfer, and the protection of various forms of IP (patents, trademarks, copyrights)
Civil Code of the Philippines (Republic Act No. 386): Provides the fundamental principles of contracts, obligations, and legal relationships between parties in the Philippines
National Internal Revenue Code (Republic Act No. 8424): Contains provisions on the taxation of royalty payments, including withholding tax requirements for royalty income
Philippine Competition Act (Republic Act No. 10667): Ensures that licensing agreements do not create unfair competition or monopolistic practices
Technology Transfer Act (Republic Act No. 10055): Governs the transfer of technology and provides framework for commercialization of intellectual property and technology
Rules and Regulations on Voluntary Licensing (IPOPHL Administrative Order No. 2020-007): Specific regulations from the Intellectual Property Office of the Philippines regarding voluntary licensing arrangements
Foreign Investments Act (Republic Act No. 7042): Relevant if the licensing agreement involves foreign parties, governing foreign participation in business activities
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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