The Trademark Use Agreement is essential for businesses seeking to license their trademarks in Saudi Arabia or to Saudi Arabian entities. This document is particularly crucial given Saudi Arabia's specific regulatory requirements and the need to comply with both civil law and Sharia principles. It's commonly used when entering the Saudi market, establishing franchise operations, or expanding business operations through licensed partners. The agreement must carefully balance international trademark protection standards with local legal requirements, including the Saudi Trademark Law (Royal Decree No. M/21) and relevant GCC regulations. It typically includes detailed provisions for quality control, payment structures that comply with Islamic finance principles, and specific territorial restrictions within the Kingdom or broader GCC region.
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1. Parties: Identification of the trademark owner (Licensor) and the party granted usage rights (Licensee), including full legal names and addresses
2. Background: Context of the agreement, including trademark ownership details and registration numbers
3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Licensed Marks', 'Territory', and 'Licensed Products'
4. Grant of License: Specific rights being granted, including type of license (exclusive/non-exclusive), territory, and permitted uses
5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
6. Payment Terms: Financial terms including royalties, payment schedules, and calculation methods
7. Quality Control: Standards for trademark usage, approval processes, and quality maintenance requirements
8. Protection of the Licensed Marks: Obligations regarding trademark protection, infringement reporting, and enforcement
9. Representations and Warranties: Statements of fact and guarantees from both parties
10. Compliance with Laws: Obligations to comply with Saudi Arabian laws and Sharia principles
11. Confidentiality: Protection of confidential information exchanged during the agreement
12. General Provisions: Standard clauses including notices, assignment, and governing law
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties
2. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be detailed
3. E-commerce Provisions: Include when trademark usage extends to online platforms and digital commerce
4. Export Control: Include when products will be exported outside Saudi Arabia
5. Islamic Finance Compliance: Include when payment structures need to comply with Islamic finance principles
6. Local Agent Provisions: Include when a local Saudi agent is involved in the arrangement
7. Competition Compliance: Include when there are potential competition law implications
1. Schedule 1 - Licensed Marks: Detailed list of all trademarks covered by the agreement, including registration numbers and classes
2. Schedule 2 - Licensed Products/Services: Comprehensive list of products or services for which the trademark may be used
3. Schedule 3 - Quality Standards: Detailed quality control requirements and specifications
4. Schedule 4 - Royalty Calculations: Detailed methodology for calculating royalties and other payments
5. Schedule 5 - Brand Guidelines: Specific requirements for visual representation and usage of the trademarks
6. Schedule 6 - Approval Procedures: Step-by-step procedures for obtaining approval for trademark usage
7. Appendix A - Template Approval Forms: Standard forms for seeking approval for new uses of the trademark
Relevant legal definitions
Clauses
Relevant Industries
Retail
Consumer Goods
Manufacturing
Food and Beverage
Fashion and Luxury
Technology
Pharmaceuticals
Automotive
Entertainment
Education
Professional Services
Healthcare
Hospitality
E-commerce
Sports and Recreation
Relevant Teams
Legal
Intellectual Property
Commercial
Compliance
Brand Management
Business Development
Marketing
Quality Assurance
Corporate Affairs
Risk Management
International Operations
Relevant Roles
Legal Counsel
Intellectual Property Manager
Brand Manager
Commercial Director
Licensing Manager
Compliance Officer
Business Development Manager
Corporate Lawyer
Regional Manager
Chief Legal Officer
Trademark Attorney
Commercial Operations Manager
Quality Control Manager
Marketing Director
General Counsel
Contract Manager
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