Trade Mark Licence Agreement Template for Saudi Arabia

A Trade Mark Licence Agreement is a legally binding contract that allows you to grant or obtain permission to use registered trademarks in Saudi Arabia. This document establishes the terms under which a trademark owner (licensor) permits another party (licensee) to use their trademark while maintaining ownership and control over the brand. Under Saudi Arabian law, trademark licensing requires careful documentation to ensure compliance with the Saudi Trademark Law and protection of intellectual property rights.

When do you need this document?

You need a Trade Mark Licence Agreement when entering franchise partnerships in Saudi Arabia, allowing local businesses to operate under your brand name. Manufacturing companies require this agreement when licensing their trademarks to Saudi-based producers for local market distribution. International brands expanding into the Saudi market often use licensing agreements with local partners who understand regional consumer preferences and regulatory requirements. Technology companies licensing software or digital products in Saudi Arabia need this document to protect their trademark rights while enabling local distribution. Joint ventures between Saudi and foreign companies frequently require trademark licensing agreements to clarify brand usage rights and territorial restrictions.

Key legal considerations

Quality control provisions are essential in your agreement to maintain brand standards and comply with Saudi trademark law requirements. You must clearly define the scope of licensed rights, including specific products or services, geographical territory within Saudi Arabia, and duration of the license. Payment terms should comply with Sharia principles, avoiding interest-based arrangements and ensuring transparency in financial obligations. Termination clauses must address breach of contract scenarios, including failure to maintain quality standards or violation of territorial restrictions. Your agreement should include provisions for trademark registration maintenance, renewal obligations, and protection against infringement in the Saudi market.

Legal requirements in Saudi Arabia

Saudi trademark licensing agreements must comply with the Saudi Trademark Law (Royal Decree No. M/21) and its implementing regulations administered by the Saudi Authority for Intellectual Property (SAIP). Foreign licensors may need to appoint a local Saudi agent or representative to handle trademark matters and ensure regulatory compliance. All trademark licenses should be recorded with SAIP to provide legal protection and establish priority rights in case of disputes. The agreement must respect Islamic commercial principles, ensuring that licensed products or services comply with Sharia law and local cultural standards. Documentation requirements include Arabic translations of key provisions and proper notarization according to Saudi legal standards for enforceability in local courts.