A Trade Secret License Agreement is essential when a business or individual wishes to share valuable confidential information while maintaining control over its use and distribution. This document is particularly relevant in Belgium, where trade secrets are protected under the Belgian Act of 30 July 2018, implementing the EU Trade Secrets Directive. The agreement should be used when sharing manufacturing processes, technical know-how, business methods, formulas, or other confidential information that provides competitive advantage. It includes specific provisions for protecting the licensed information, defining permitted uses, establishing security protocols, and ensuring compliance with Belgian and EU regulations. The document is crucial for maintaining the value of trade secrets while enabling their commercial exploitation through licensing.
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1. Parties: Identification of the licensor and licensee, including full legal names, registration details, and addresses
2. Background: Context of the agreement, nature of the trade secrets, and parties' intentions
3. Definitions: Key terms including 'Trade Secrets', 'Confidential Information', 'Licensed Rights', 'Territory', and 'Permitted Purpose'
4. Grant of License: Scope of license, permitted uses, and any territorial or field-of-use restrictions
5. License Fees and Payment Terms: Financial terms, payment schedule, reporting requirements, and audit rights
6. Protection and Handling of Trade Secrets: Security measures, access restrictions, and protocols for handling the licensed trade secrets
7. Confidentiality Obligations: Detailed confidentiality provisions, including duration and specific protection measures
8. Term and Termination: Duration of the agreement, termination triggers, and consequences of termination
9. Warranties and Representations: Parties' warranties regarding ownership, right to license, and non-infringement
10. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements
11. Governing Law and Jurisdiction: Belgian law as governing law and jurisdiction for dispute resolution
1. Improvements and Developments: Ownership and rights regarding improvements to the licensed trade secrets, used when future developments are anticipated
2. Sublicensing Rights: Terms for sublicensing if permitted, including approval processes and restrictions
3. Quality Control: Quality standards and monitoring provisions, relevant for manufacturing or product-related trade secrets
4. Employee and Contractor Obligations: Additional provisions for handling access by employees and contractors, important when broad access is needed
5. Export Control: Export restriction provisions, necessary when trade secrets involve controlled technologies
6. Source Code Escrow: Escrow provisions for software-related trade secrets, used when software is a key component
7. Alternative Dispute Resolution: Mediation or arbitration provisions, optional alternative to court proceedings
1. Schedule 1 - Licensed Trade Secrets: Detailed description of the trade secrets being licensed
2. Schedule 2 - Security Protocols: Specific security measures and handling procedures for the trade secrets
3. Schedule 3 - Fee Schedule: Detailed breakdown of license fees, royalties, and payment terms
4. Schedule 4 - Approved Sublicensees: List of pre-approved sublicensees if applicable
5. Schedule 5 - Technical Requirements: Technical specifications and requirements for implementing the trade secrets
6. Appendix A - Required Notices: Format and content of required notices and markings
7. Appendix B - Confidentiality Agreements: Template confidentiality agreements for employees and contractors
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