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A Patent knowhow licence lets companies share technical expertise and trade secrets alongside their patented technology in Saudi Arabia. It combines patent rights with practical knowledge, manufacturing techniques, and confidential information that helps licensees fully implement the patented innovation.

Under Saudi IP laws, these licenses give businesses a competitive edge by protecting both registered patents and valuable unpatented know-how. Companies commonly use them in manufacturing, technology, and industrial sectors where technical expertise is just as important as the patent itself. The Saudi Authority for Intellectual Property (SAIP) recognizes these agreements as essential tools for technology transfer and industrial development.

Use a Patent knowhow licence when transferring valuable technical expertise alongside patented technology in Saudi Arabia. This becomes essential in complex industries like manufacturing, pharmaceuticals, or petrochemicals, where successful implementation requires both the patent rights and detailed technical knowledge.

The licence proves especially valuable when entering joint ventures or technology transfer agreements with international partners. Under SAIP regulations, combining patent rights with protected know-how creates stronger legal safeguards for both parties. It helps Saudi businesses access critical implementation details while giving patent holders more control over how their technology gets used.

• Exclusive licence: Grants sole rights to use both the patent and know-how in Saudi Arabia, often used in high-value manufacturing deals
• Non-exclusive licence: Allows multiple licensees to use the technology and expertise, common in broader technology transfer programs
• Limited-field licence: Restricts use to specific industries or applications under SAIP guidelines
• Hybrid development licence: Combines know-how sharing with ongoing technical support and training
• Regional licence: Limits usage rights to specific geographic areas within the Kingdom or GCC region

• Patent Holders: Technology companies, inventors, or research institutions who own patented innovations and related technical knowledge in Saudi Arabia
• Licensee Companies: Saudi businesses seeking to implement patented technologies, often manufacturers or industrial firms
• IP Lawyers: Draft and negotiate Patent knowhow licence terms, ensuring SAIP compliance and proper protection of rights
• Technical Experts: Help document and transfer the practical know-how aspects of the technology
• SAIP Officials: Review and register these agreements when they involve registered Saudi patents

• Patent Details: Gather Saudi patent registration numbers, technical specifications, and scope of protected technology
• Know-how Scope: Document all technical processes, trade secrets, and operational expertise to be transferred
• Usage Rights: Define territorial limits, permitted applications, and any industry-specific restrictions
• Technical Support: Outline training requirements, documentation needs, and ongoing assistance terms
• Commercial Terms: Determine royalty structures, payment schedules, and performance milestones
• SAIP Requirements: Review current regulations for technology transfer agreements and local registration needs

• Parties Section: Full legal names and addresses of licensor and licensee under Saudi law
• Patent Details: Saudi patent numbers, filing dates, and technology descriptions
• Know-how Definition: Precise scope of technical information and trade secrets being licensed
• Grant Clause: Clear statement of rights being transferred and usage limitations
• Confidentiality Terms: Protection measures for sensitive technical information
• Payment Structure: Detailed royalty calculations and payment schedules
• Term and Termination: Duration, renewal options, and grounds for early termination
• Governing Law: Explicit reference to Saudi law and SAIP regulations

A Patent knowhow licence differs significantly from a Patent assignment agreement in both scope and purpose. While both deal with patent rights under Saudi law, they serve fundamentally different business needs.

• Ownership Transfer: A patent assignment permanently transfers ownership of the patent, while a knowhow licence only grants usage rights while maintaining original ownership
• Scope of Rights: Knowhow licences include technical expertise and trade secrets beyond the patent itself, making them more comprehensive for technology implementation
• Duration: Licences typically have defined terms with renewal options, while assignments are permanent transfers
• Payment Structure: Assignments usually involve one-time payments, while knowhow licences often include ongoing royalties and technical support fees
• SAIP Registration: Both require registration, but knowhow licences need additional confidentiality provisions to protect unpatented information