The Service License Agreement is a crucial document used in Saudi Arabia when one party wishes to grant another the right to use specific services, whether technological, professional, or consultancy in nature. This agreement type is particularly important in the Saudi market due to specific regulatory requirements and the need to comply with both commercial regulations and Sharia principles. The document addresses essential elements such as service specifications, usage rights, territorial restrictions, payment terms, and compliance with Saudi data protection laws (NDPR). It's commonly used in technology implementations, professional service arrangements, and various commercial relationships where service licensing is required. The agreement must be structured to account for Saudi-specific requirements, including Arabic language provisions and local commercial practices, while providing comprehensive protection for both parties' interests.
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1. Parties: Identification of the licensor and licensee, including full legal names, commercial registration numbers, and addresses
2. Background: Context of the agreement, nature of the services, and general commercial intent of the parties
3. Definitions: Key terms used throughout the agreement, including technical terms, service definitions, and territory specifications
4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and permitted uses
5. Service Specifications: Detailed description of the licensed services, technical requirements, and service levels
6. License Fees and Payment Terms: Financial terms, payment schedule, currency, and payment methods compliant with Saudi banking regulations
7. Term and Termination: Duration of the agreement, renewal terms, and termination rights
8. Intellectual Property Rights: Ownership of IP, protection measures, and licensing restrictions
9. Confidentiality: Protection of confidential information and trade secrets
10. Data Protection and Privacy: Compliance with Saudi NDPR and data protection requirements
11. Warranties and Representations: Standard warranties regarding service quality, IP ownership, and compliance with Saudi law
12. Limitation of Liability: Liability caps and exclusions permitted under Saudi law
13. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction of Saudi courts
14. Language: Specification of Arabic as the governing language with optional English translation
1. Change Control: Procedures for implementing changes to services or terms, recommended for complex service arrangements
2. Service Level Agreement: Detailed performance metrics and remedies, recommended for technical or mission-critical services
3. Security Requirements: Specific security protocols and requirements, essential for services involving sensitive data
4. Disaster Recovery: Business continuity and disaster recovery procedures, important for critical service provisions
5. Training and Support: Terms for technical support and training services, relevant for complex service implementations
6. Insurance: Insurance requirements and coverage specifications, recommended for high-risk services
7. Anti-Corruption: Compliance with anti-corruption laws, recommended for international service arrangements
8. Force Majeure: Provisions for unforeseen circumstances preventing performance
9. Assignment and Subcontracting: Terms for transferring rights or obligations, important for complex commercial relationships
1. Service Description Schedule: Detailed technical specifications and service descriptions
2. Fee Schedule: Detailed breakdown of fees, payment terms, and calculation methods
3. Service Level Agreement Schedule: Detailed performance metrics, measurement methods, and remedies
4. Technical Requirements Schedule: Hardware, software, and infrastructure requirements
5. Support Services Schedule: Details of support services, response times, and escalation procedures
6. Data Processing Schedule: Specific terms for handling personal and sensitive data
7. Change Request Template: Standard form for requesting and documenting changes to services
8. Contact Details Schedule: Key contacts and escalation paths for both parties
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Software Development
Professional Services
Consulting
Healthcare Technology
Financial Services
Telecommunications
Education Technology
Industrial Services
Cloud Services
Digital Solutions
Manufacturing
Oil and Gas
Engineering Services
Business Process Outsourcing
Relevant Teams
Legal
Commercial
Information Technology
Procurement
Business Development
Compliance
Operations
Finance
Risk Management
Service Delivery
Product Development
Strategic Planning
Technical Operations
Relevant Roles
Legal Counsel
Commercial Director
Technology Manager
Procurement Manager
Business Development Director
Compliance Officer
Contract Manager
IT Director
Chief Technology Officer
Operations Manager
Project Manager
Chief Financial Officer
Risk Manager
Service Delivery Manager
Licensing Manager
Commercial Operations Director
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