A Territory Licence Agreement is essential when a rights holder wishes to grant another party the authority to use their intellectual property within a specific geographical region. Under English and Welsh law, this document defines the scope of licensed rights, territorial boundaries, payment terms, and compliance requirements. It's particularly valuable for businesses expanding into new markets through local partners, ensuring proper control over IP exploitation while maintaining legal protection. The agreement typically includes provisions for quality control, reporting obligations, and termination rights, structured to comply with UK competition law and intellectual property regulations.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement including Territory, Licensed Rights, and other crucial definitions
4. Grant of Licence: Specific rights being granted and territory definition, including scope and limitations
5. Term and Termination: Duration of agreement and circumstances for termination, including notice periods and consequences
6. Payment Terms: Fees, royalties, payment schedules, and currency considerations
7. Intellectual Property Rights: Ownership and protection of IP, including enforcement provisions
8. Confidentiality: Protection of confidential information and trade secrets
9. Governing Law: Applicable law (England and Wales) and jurisdiction
1. Quality Control: Standards, monitoring requirements, and quality assurance procedures for licensed products or services
2. Marketing and Promotion: Requirements and restrictions for marketing licensed products/services in the territory
3. Sub-licensing Rights: Terms and conditions under which the licensee may sub-license the rights
4. Training and Support: Provisions for technical support, training, and knowledge transfer
1. Schedule 1: Licensed Territory: Detailed description and/or maps of the geographical territory covered by the licence
2. Schedule 2: Licensed Products/Services: Comprehensive list and specifications of products or services covered by the licence
3. Schedule 3: Royalty Calculations: Detailed breakdown of payment calculations, including minimum guarantees if applicable
4. Schedule 4: Quality Standards: Specific quality requirements, metrics, and testing procedures
5. Schedule 5: Trademark Usage Guidelines: Detailed rules and specifications for using licensed trademarks and branding
6. Schedule 6: Reporting Requirements: Templates, formats, and timing for required reports and notifications
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