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Perpetual Trademark License

Perpetual Trademark License Template for Saudi Arabia

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Key Requirements PROMPT example:

Perpetual Trademark License

"I need a Perpetual Trademark License Agreement for my Saudi manufacturing company to produce and sell branded automotive parts across the GCC region, with provisions for quality control and manufacturing standards to be implemented by March 2025."

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Document background
The Perpetual Trademark License Agreement is essential for businesses seeking to establish long-term brand presence in Saudi Arabia through licensed trademark usage. This document is particularly relevant when parties wish to create an indefinite licensing arrangement rather than a fixed-term agreement, typically used in scenarios involving significant investment in brand development or long-term strategic partnerships. The agreement must comply with Saudi Arabia's trademark laws, including the Trademark Law (Royal Decree No. M/21) and its implementing regulations, while adhering to Shariah law principles. It includes comprehensive provisions for quality control, royalty payments, enforcement mechanisms, and specific termination triggers, ensuring the perpetual nature of the license doesn't compromise the licensor's ability to maintain brand integrity. The document is structured to protect both parties' interests while meeting regulatory requirements for trademark licensing in Saudi Arabia.
Suggested Sections

1. Parties: Identification of the Licensor and Licensee with full legal names, addresses, and registration details

2. Background: Context of the agreement, description of the trademark ownership, and parties' intentions

3. Definitions: Detailed definitions of key terms including Licensed Marks, Territory, and Permitted Use

4. Grant of License: Scope of the perpetual license, including territorial restrictions and permitted uses

5. Quality Control: Standards for trademark usage and Licensor's right to monitor and inspect

6. Licensee Obligations: Core responsibilities including proper trademark usage, maintenance of quality standards, and reporting requirements

7. Royalty Payments: Payment terms, calculation methods, and payment procedures compliant with Sharia principles

8. Trademark Protection: Obligations regarding trademark protection, infringement reporting, and cooperation in enforcement

9. Representations and Warranties: Standard warranties regarding trademark ownership, right to license, and compliance with Sharia law

10. Term and Termination for Cause: Perpetual nature of the license and specific grounds for termination

11. Post-Termination Obligations: Procedures and obligations following any termination for cause

12. Confidentiality: Protection of confidential information exchanged during the relationship

13. Governing Law and Dispute Resolution: Saudi law as governing law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate provisions adapted to Saudi law requirements

Optional Sections

1. Sublicensing Rights: Include when Licensee is permitted to sublicense the trademark to third parties

2. Digital Usage: Include for specific provisions regarding online and social media trademark usage

3. Export Controls: Include when licensed products may be subject to export restrictions

4. Islamic Finance Compliance: Detailed section required when financial arrangements need specific Sharia compliance provisions

5. Manufacturing Standards: Include when Licensee will manufacture products bearing the trademark

6. Marketing Approval Rights: Include when Licensor requires pre-approval of marketing materials

7. Corporate Social Responsibility: Include when parties want to ensure compliance with specific ethical or social standards

8. Force Majeure: Include specific provisions for unforeseen circumstances affecting performance

Suggested Schedules

1. Schedule 1 - Licensed Marks: Detailed listing and images of all licensed trademarks, including registration numbers

2. Schedule 2 - Quality Control Standards: Specific quality standards and specifications for trademark usage

3. Schedule 3 - Approved Products/Services: Comprehensive list of products/services for which the trademark may be used

4. Schedule 4 - Territory Definition: Detailed description of geographic territories where license is valid

5. Schedule 5 - Royalty Calculations: Detailed methodology for calculating royalties in compliance with Sharia principles

6. Schedule 6 - Brand Guidelines: Technical specifications for trademark usage, including size, colors, and positioning

7. Appendix A - Approval Procedures: Step-by-step procedures for obtaining necessary approvals from Licensor

8. Appendix B - Reporting Templates: Standard forms for required periodic reports and notifications

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
Approved Products
Approved Services
Brand Guidelines
Business Day
Commencement Date
Confidential Information
Control
Effective Date
Force Majeure Event
Governing Law
Gross Sales
Intellectual Property Rights
Licensed Marks
Licensed Products
Licensed Services
Licensed Territory
Net Sales
Permitted Use
Quality Standards
Quarterly Period
Royalty
SAIP
Shariah Compliant
Subsidiary
Term
Territory
Third Party
Trademark Law
Trademark Register
Working Hours
Year
Marketing Materials
Quality Control Procedures
Reporting Period
Serious Breach
Standards of Quality
Sub-license
Technical Standards
Trade Channels
Use
Valid Claim
Zakat
Clauses
Interpretation
License Grant
Term and Perpetual Rights
Quality Control
Trademark Usage
Territory Restrictions
Royalty Payments
Payment Terms
Reporting Requirements
Intellectual Property Protection
Registration Rights
Compliance
Sharia Compliance
Warranties
Representations
Sub-licensing
Confidentiality
Non-Competition
Indemnification
Liability Limitation
Insurance
Record Keeping
Audit Rights
Force Majeure
Assignment
Termination for Cause
Post-Termination Obligations
Dispute Resolution
Governing Law
Notices
Entire Agreement
Severability
Amendment
Waiver
Third Party Rights
Further Assurance
Costs
Counterparts
Language
Good Faith
Relevant Industries

Consumer Goods

Retail

Manufacturing

Food and Beverage

Fashion and Apparel

Technology

Healthcare

Automotive

Hospitality

Entertainment

Sports

Education

Professional Services

Industrial Products

Telecommunications

Relevant Teams

Legal

Intellectual Property

Compliance

Commercial

Business Development

Brand Management

Risk Management

Operations

Finance

Marketing

Relevant Roles

Chief Legal Officer

Intellectual Property Counsel

Brand Manager

Licensing Director

Commercial Director

Chief Executive Officer

General Counsel

Compliance Officer

Shariah Compliance Advisor

Business Development Manager

Contract Manager

Trademark Attorney

Legal Operations Manager

Risk Manager

Chief Commercial Officer

Industries
Trademark Law (Royal Decree No. M/21): The primary legislation governing trademark registration, protection, and licensing in Saudi Arabia. It defines trademark rights, requirements for valid licenses, and enforcement mechanisms.
Implementing Regulations of the Trademark Law: Detailed regulations that complement the Trademark Law, providing specific procedures for trademark licensing, registration requirements, and administrative processes.
Commercial Courts Law (Royal Decree No. M/93): Governs commercial disputes and enforcement procedures, including those related to trademark licensing agreements.
Commercial Agencies Law (Royal Decree No. M/11): May be relevant if the trademark license includes elements of commercial agency arrangements, as it regulates relationships between foreign trademark owners and local agents.
Competition Law (Royal Decree No. M/75): Ensures the license agreement doesn't contain anti-competitive provisions or create monopolistic practices in the Saudi market.
Islamic Sharia Law: Fundamental legal framework in Saudi Arabia that affects contract validity, prohibited activities, and general principles of commercial transactions.
Anti-Commercial Fraud Law (Royal Decree No. M/19): Relevant for provisions related to trademark protection and prevention of counterfeiting or unauthorized use.
Electronic Transactions Law (Royal Decree No. M/18): Applicable if the license agreement involves electronic execution or digital aspects of trademark usage.
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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