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Trade Name License Agreement for Saudi Arabia

Trade Name License Agreement Template for Saudi Arabia

A Trade Name License Agreement under Saudi Arabian law is a legally binding document that establishes the terms and conditions under which a trade name owner (licensor) grants another party (licensee) the right to use their registered trade name in Saudi Arabia. This agreement must comply with the Saudi Commercial Names Law, Trademark Law, and relevant Ministry of Commerce regulations. It includes specific provisions for trade name usage, quality control measures, compliance with Sharia principles, and dispute resolution mechanisms within the Saudi legal framework. The document addresses licensing fees, territorial restrictions, renewal terms, and obligations of both parties while ensuring adherence to local commercial practices and regulatory requirements.

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What is a Trade Name License Agreement?

The Trade Name License Agreement is essential for businesses seeking to authorize others to use their registered trade names in Saudi Arabia. This document is particularly crucial in scenarios involving business expansion, franchising, or brand licensing within the Kingdom. It must comply with Saudi Arabia's Commercial Names Law, Ministry of Commerce regulations, and Sharia principles. The agreement typically includes comprehensive details about the trade name's usage rights, quality control measures, fee structures, and compliance requirements. It serves as a vital tool for protecting intellectual property rights while facilitating commercial relationships in the Saudi market. The document should be carefully drafted to address both the commercial interests of the parties and the specific regulatory requirements of Saudi Arabian authorities, including proper registration and documentation of the trade name license with relevant government bodies.

What sections should be included in a Trade Name License Agreement?

1. Parties: Identification of the licensor and licensee with full legal names, commercial registration numbers, and addresses as required by Saudi law

2. Background: Context of the agreement, ownership details of the trade name, and its registration status with Saudi authorities

3. Definitions: Key terms used in the agreement, including specific Arabic terms and their English equivalents where applicable

4. Grant of License: Scope and nature of the trade name license, including territorial limitations within Saudi Arabia

5. Term and Renewal: Duration of the license and conditions for renewal in accordance with Saudi commercial registration requirements

6. License Fees: Financial terms including initial fees, recurring payments, and payment methods compliant with Sharia principles

7. Quality Control: Standards and requirements for trade name usage to maintain reputation and comply with Saudi commercial practices

8. Compliance with Laws: Obligations to comply with Saudi laws, regulations, and Sharia principles

9. Protection of Trade Name: Rights and obligations regarding protection and enforcement of trade name rights

10. Termination: Grounds and procedures for termination, including mandatory notice periods under Saudi law

11. Governing Law and Jurisdiction: Explicit reference to Saudi law governance and jurisdiction of Saudi courts

What sections are optional to include in a Trade Name License Agreement?

1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to other parties

2. Geographic Expansion: Include when there's potential for expanding use of the trade name to other GCC countries

3. Digital Usage: Include when the trade name will be used in digital platforms and social media

4. Assignment Rights: Include when transfer rights need to be specifically addressed

5. Alternative Dispute Resolution: Include when parties prefer arbitration or mediation before court proceedings

6. Language Preference: Include when agreement is bilingual to specify which language prevails

7. Force Majeure: Include detailed force majeure provisions beyond standard terms

What schedules should be included in a Trade Name License Agreement?

1. Schedule 1 - Trade Name Details: Official registration details, certificate numbers, and history of the trade name

2. Schedule 2 - Approved Usage Guidelines: Specific guidelines for trade name usage, including formatting and placement requirements

3. Schedule 3 - Fee Schedule: Detailed breakdown of all applicable fees and payment terms

4. Schedule 4 - Quality Control Procedures: Detailed procedures for maintaining quality standards and reporting requirements

5. Appendix A - Trade Name Registration Certificate: Copy of official registration certificate from Saudi authorities

6. Appendix B - Power of Attorney: If required for registration or enforcement purposes

7. Appendix C - Compliance Documentation: Relevant compliance certificates and regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions


































Clauses































Relevant Industries

Retail

Hospitality

Food and Beverage

Professional Services

Healthcare

Education

Manufacturing

Technology

Real Estate

Fashion and Luxury Goods

Automotive

Financial Services

Construction

Entertainment

Relevant Teams

Legal

Commercial Operations

Licensing

Brand Management

Compliance

Business Development

Corporate Secretariat

Risk Management

Intellectual Property

International Operations

Relevant Roles

Legal Counsel

Commercial Director

Licensing Manager

Brand Manager

Compliance Officer

Business Development Manager

Franchise Manager

Intellectual Property Manager

Corporate Secretary

General Counsel

Chief Legal Officer

Commercial Operations Manager

Risk Manager

Regional Director

Managing Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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