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.
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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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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
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
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
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
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
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
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