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Non Exclusive Royalty License

Non Exclusive Royalty License Template for South Africa

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Key Requirements PROMPT example:

Non Exclusive Royalty License

"I need a Non-Exclusive Royalty License agreement for licensing our proprietary software to multiple South African educational institutions, with quarterly royalty payments of 8% of net sales and a minimum annual payment of R500,000, starting March 2025."

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Document background
This Non-Exclusive Royalty License agreement is designed for use in situations where an intellectual property owner wishes to grant usage rights to multiple parties while maintaining ownership and control of the IP. The document is particularly relevant in the South African context, incorporating requirements from local intellectual property legislation, competition law, and exchange control regulations. It provides a framework for licensing various forms of intellectual property, including patents, trademarks, and copyrights, while establishing clear mechanisms for royalty payments and quality control. The agreement is structured to protect both licensor and licensee interests while ensuring compliance with South African legal requirements for non-exclusive licensing arrangements.
Suggested Sections

1. Parties: Identification and details of the Licensor and Licensee

2. Background: Context of the agreement and overview of the intellectual property being licensed

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of License: Specific terms of the non-exclusive license, including scope, territory, and field of use

5. License Period: Duration of the license and renewal terms

6. Royalty Payments: Detailed structure of royalty calculations, payment terms, and reporting requirements

7. Intellectual Property Rights: Confirmation of IP ownership and protection measures

8. Quality Control: Standards and requirements for use of the licensed IP

9. Record Keeping and Audit Rights: Requirements for maintaining records and licensor's audit rights

10. Representations and Warranties: Standard warranties regarding IP ownership and right to license

11. Limitation of Liability: Limitations on parties' liability under the agreement

12. Termination: Grounds and process for termination of the license

13. Post-Termination Obligations: Obligations of parties after agreement termination

14. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

Optional Sections

1. Sub-licensing Rights: Terms for sub-licensing if permitted - include when licensee needs to grant sub-licenses

2. Export Control: Compliance with export regulations - include for international licensing

3. Source Code Escrow: Terms for software source code escrow - include for software licensing

4. Marketing and Promotion: Guidelines for marketing licensed products - include for consumer-facing products

5. Improvements and Modifications: Rights regarding improvements to licensed IP - include for technical or patent licenses

6. Competition Compliance: Specific provisions ensuring compliance with competition law - include for market-dominant licensors

7. Local Content Requirements: Local manufacturing or content requirements - include if required by local regulations

Suggested Schedules

1. Schedule 1: Licensed Intellectual Property: Detailed description of all IP being licensed, including registration numbers

2. Schedule 2: Royalty Calculation Method: Detailed formula and examples of royalty calculations

3. Schedule 3: Technical Specifications: Technical requirements and standards for using the licensed IP

4. Schedule 4: Quality Control Standards: Detailed quality control requirements and testing procedures

5. Schedule 5: Reporting Template: Template for regular royalty reporting

6. Schedule 6: Approved Sub-licensees: List of pre-approved sub-licensees if applicable

7. Appendix A: Brand Guidelines: Guidelines for use of licensed trademarks or brands

Authors

Alex Denne

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

alex.den.21@genieai.co
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Relevant Industries

Technology and Software

Manufacturing

Media and Entertainment

Pharmaceuticals and Biotechnology

Consumer Goods

Research and Development

Telecommunications

Automotive

Energy and Resources

Education and Training

Relevant Teams

Legal

Intellectual Property

Business Development

Finance

Research and Development

Product Development

Commercial

Compliance

Innovation

Brand Management

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Manager

Business Development Director

Chief Technology Officer

Commercial Director

Finance Manager

Compliance Officer

Research and Development Director

Product Manager

Brand Manager

Innovation 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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