ANATOMY OF A LICENSE AGREEMENT

Licensor, Licensee and Licensed Property

Title to the Intellectual Property being licensed

Written agreement

Licensing Agreements

Contractual Provisions

Licensed Property

o Definite and Specific

o Use in respect of specific goods / services

Contractual ProvisionsGrant of License

o Definiteo Limitation / Identification of rights licensed

o Extent of permitted use – whole or parto Exclusive or Non-exclusive – Licensor Limitation and

Conditions for Licenseeo Territoryo Sub-license and retention of right to license to others for

other uses

Considerationo Popular models

Fixed payment Royalty Fixed payment + Royalty

o Calculation, payment intervals, currencyo Account statementso Applicability of foreign exchange regulations

Contractual Provisions

Contractual ProvisionsTermination

o Term and renewal o Notice period for terminationo Specific conditions – material breaches

Failure to pay royalties Failure to maintain quality controls Failure to maintain confidentiality Failure to meet estimated sales targets/levels Breach of representations and warranties

Proprietary rightso Ownership – acknowledgement and waiver by Licenseeo Protection – support in registration

Infringemento By third party or of third party’so Right to defend – Licensor or Licenseeo Notice of infringement

Contractual Provisions

Confidentiality

o Definition and exemptions

Indemnification

o Notification of a claim

Liquidated damages

o Reasonable – anticipated or actual harm caused

Contractual Provisions

Dispute resolutiono Mutual negotiationso Arbitration – arbitral tribunal; jurisdiction; venue; language

Governing Law and Jurisdictiono Exclusion of laws and/or jurisdictiono Exclusive jurisdiction to courts of a country

Contractual Provisions

Himanshu ChaharC-10, Gulmohar Park,New Delhi – 110049

Tel: +91-11-41662861Fax: +91-11-41662862

E-mail: hchahar@lexcounsel.in; lexcounsel@lexcounsel.in