The License And Service Agreement is essential for businesses operating in Saudi Arabia that need to formalize arrangements involving both licensing of intellectual property or technology and the provision of related services. This document type is particularly relevant in today's digital economy where technology transfers often require ongoing support and services. It ensures compliance with Saudi Arabian legal requirements, including the Commercial Law (Royal Decree No. M/32), Electronic Transactions Law, and relevant intellectual property regulations. The agreement is structured to protect both parties' interests while maintaining alignment with Sharia law principles and local business practices. It's commonly used in situations where software, technology, or other intellectual property is being licensed along with implementation, maintenance, or support services, making it particularly valuable for technology companies, service providers, and businesses undergoing digital transformation within the Saudi Arabian market.
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1. Parties: Identification of the licensor and licensee, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of the parties' business activities, and purpose of the licensing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of License: Scope, nature (exclusive/non-exclusive), and territory of the license granted
5. Services: Detailed description of services to be provided, including service levels and performance standards
6. Fees and Payment Terms: License fees, service charges, payment schedules, and payment methods
7. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination
8. Intellectual Property Rights: Ownership and protection of IP, usage rights, and restrictions
9. Confidentiality: Protection of confidential information and trade secrets
10. Warranties and Representations: Promises and guarantees made by both parties
11. Limitation of Liability: Extent and limitations of each party's liability
12. Force Majeure: Provisions for unforeseeable circumstances preventing performance
13. Governing Law and Jurisdiction: Specification of Saudi Arabian law and jurisdiction for dispute resolution
14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Support Services: Details of technical support, maintenance, and updates - include when the license involves software or technical products
2. Training: Training obligations and requirements - include when the licensed product/service requires specific user training
3. Data Protection: Specific provisions for handling personal data - include when the services involve processing personal data
4. Export Control: Compliance with export regulations - include for international licensing arrangements
5. Source Code Escrow: Source code protection arrangements - include for software licensing agreements
6. Change Control: Procedures for managing changes to services or licensed materials - include for complex technical arrangements
7. Service Credits: Compensation mechanism for service level failures - include for critical service agreements
8. Disaster Recovery: Business continuity provisions - include for critical service arrangements
1. Licensed Materials: Detailed description of licensed products, software, or materials
2. Service Level Agreement (SLA): Detailed service levels, performance metrics, and remedies
3. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms
4. Technical Specifications: Technical requirements and specifications for the licensed materials
5. Support Services Details: Comprehensive description of support services and procedures
6. Security Requirements: Security standards and protocols to be followed
7. Approved Subcontractors: List of approved subcontractors and their roles
8. Change Request Form: Template for requesting and documenting changes to services or licensed materials
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software Development
Telecommunications
Healthcare Technology
Financial Services
Manufacturing
Education Technology
Professional Services
Media and Entertainment
Energy and Utilities
Pharmaceutical and Life Sciences
Retail and E-commerce
Relevant Teams
Legal
Information Technology
Procurement
Operations
Commercial
Compliance
Finance
Business Development
Project Management
Service Delivery
Account Management
Risk Management
Relevant Roles
Chief Technology Officer
Legal Counsel
Contracts Manager
Procurement Manager
IT Director
Commercial Director
Licensing Manager
Intellectual Property Manager
Operations Director
Business Development Manager
Compliance Officer
Project Manager
Service Delivery Manager
Account Executive
Chief Financial Officer
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