The Commercial Use License serves as a crucial legal instrument in the Philippine business environment, enabling controlled commercialization of intellectual property and proprietary assets. This document type is essential when a rights holder wishes to permit another entity to use their intellectual property for commercial purposes while maintaining ownership and control over the asset. It must comply with the Philippine Intellectual Property Code (Republic Act No. 8293) and related commercial regulations, making it suitable for both domestic and international transactions involving Philippine entities. The license typically includes comprehensive terms covering usage scope, territorial limitations, quality control measures, and payment structures, while incorporating necessary protections under Philippine law. It's particularly relevant for technology transfers, software licensing, brand licensing, and other commercial IP transactions where clear usage parameters and protection mechanisms are crucial.
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1. Parties: Identifies and provides full details of the Licensor and Licensee, including registration numbers and addresses
2. Background: Establishes context, describes the licensed property, and outlines the purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. License Grant: Specifies the scope, nature, and territory of the license (exclusive/non-exclusive, transferable/non-transferable)
5. License Fee and Payment Terms: Details the licensing fees, payment schedule, and payment methods
6. Use Restrictions: Specifies permitted and prohibited uses of the licensed property
7. Intellectual Property Rights: Confirms ownership and protection of IP rights, including any improvements or modifications
8. Term and Termination: Specifies duration, renewal terms, and circumstances for termination
9. Warranties and Representations: States warranties provided by both parties regarding authority, ownership, and non-infringement
10. Indemnification: Outlines mutual indemnification obligations for breaches and third-party claims
11. Confidentiality: Establishes obligations regarding confidential information exchange
12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for dispute resolution
13. General Provisions: Includes standard boilerplate clauses like notices, amendments, and severability
1. Quality Control: Required when licensing involves branding or quality standards that must be maintained
2. Sublicensing Rights: Include when sublicensing is permitted, specifying conditions and restrictions
3. Source Code Escrow: Necessary for software licenses where source code access may be required under specific conditions
4. Training and Support: Include when the license includes technical support or training obligations
5. Export Control: Required when licensed property may be subject to export regulations
6. Data Protection: Include when personal data processing is involved in the licensed activities
7. Insurance Requirements: Include when specific insurance coverage is required for the licensed activities
8. Audit Rights: Include when licensor requires right to audit licensee's use of licensed property
1. Schedule A - Licensed Property: Detailed description of the licensed property, including technical specifications
2. Schedule B - License Fees: Detailed breakdown of license fees, royalty calculations, and payment terms
3. Schedule C - Technical Requirements: Technical specifications and requirements for using the licensed property
4. Schedule D - Service Levels: Service level agreements if technical support is included
5. Schedule E - Approved Use Cases: Specific approved uses and examples of prohibited uses
6. Appendix 1 - Brand Guidelines: If applicable, guidelines for using licensed branding elements
7. Appendix 2 - Security Requirements: Security protocols and requirements for handling licensed property
Relevant legal definitions
Clauses
Relevant Industries
Technology
Software Development
Manufacturing
Retail
Media and Entertainment
Telecommunications
Healthcare
Financial Services
E-commerce
Education
Professional Services
Consumer Goods
Relevant Teams
Legal
Commercial
Intellectual Property
Business Development
Finance
Compliance
Operations
Risk Management
Product Development
Technology
Strategy
Relevant Roles
Legal Counsel
Commercial Director
Intellectual Property Manager
Business Development Manager
Licensing Manager
Contract Administrator
Chief Technology Officer
Chief Financial Officer
Compliance Officer
Product Manager
Operations Director
Risk Manager
General Counsel
IP Rights Specialist
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