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Non Exclusive Royalty License

Non Exclusive Royalty License Template for Canada

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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 Canadian distributors, with a 5% royalty on net sales and including provisions for software updates and technical support, to be effective from January 2025."

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Document background
The Non-Exclusive Royalty License is a crucial legal instrument in Canadian business and intellectual property practice, used when an intellectual property owner wishes to monetize their IP while maintaining control and the ability to grant similar rights to multiple parties. This document type is particularly relevant in scenarios involving patents, trademarks, copyrights, or trade secrets where exclusive rights are not required or desired by the licensee. The agreement, structured under Canadian federal and provincial legislation, typically includes comprehensive terms covering license scope, territory, royalty calculations, quality control measures, and reporting requirements. It's commonly used in technology transfer, research commercialization, and various industrial applications where multiple market participants may benefit from access to the same intellectual property.
Suggested Sections

1. Parties: Identification and details of the licensor and licensee

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

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

4. Grant of License: Scope of the license, including territory, field of use, and non-exclusive nature

5. Royalties and Payment Terms: Details of royalty calculations, payment schedules, and reporting requirements

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

7. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights

8. Intellectual Property Ownership: Confirmation of IP ownership and rights

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

10. Term and Termination: Duration of the agreement and termination provisions

11. Confidentiality: Protection of confidential information exchanged under the agreement

12. Indemnification: Allocation of risks and indemnification obligations

13. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment

Optional Sections

1. Technical Support and Training: Terms for technical assistance and training if provided by licensor

2. Improvements: Rights and obligations regarding improvements to the licensed IP

3. Sublicensing Rights: Terms under which the licensee may sublicense to third parties

4. Export Control: Compliance with export control laws if international use is contemplated

5. Source Code Escrow: For software licenses, provisions for source code escrow

6. Marketing and Promotion: Requirements and restrictions on marketing of licensed products

7. Minimum Performance Requirements: Minimum sales or usage requirements to maintain license

8. Patent Marking: Requirements for marking products with patent numbers

9. Insurance: Insurance requirements for licensed activities

Suggested Schedules

1. Schedule A - Licensed Intellectual Property: Detailed description of the IP being licensed, including patent/trademark numbers

2. Schedule B - Royalty Calculations: Detailed formula and examples of royalty calculations

3. Schedule C - Quality Control Standards: Specific quality requirements and testing procedures

4. Schedule D - Reporting Format: Templates for required periodic reports

5. Schedule E - Territory: Detailed description of geographic territory covered by license

6. Schedule F - Technical Specifications: Technical requirements and specifications for licensed products

7. Appendix 1 - Approved Forms of Marketing Materials: Pre-approved marketing templates and guidelines

8. Appendix 2 - Contact Information: Key contacts for both parties for various purposes under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓƵ | 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

Manufacturing

Pharmaceuticals

Biotechnology

Software Development

Consumer Products

Industrial Equipment

Medical Devices

Automotive

Electronics

Telecommunications

Research & Development

Entertainment

Media & Publishing

Relevant Teams

Legal

Intellectual Property

Business Development

Research & Development

Finance

Operations

Compliance

Technology Transfer

Product Development

Commercial

Licensing

Relevant Roles

Chief Technology Officer

Intellectual Property Counsel

Licensing Manager

Business Development Director

Research Director

Innovation Manager

Legal Counsel

Commercial Director

Patent Attorney

Technology Transfer Officer

Contract Manager

Chief Financial Officer

Product Development Manager

Regulatory Compliance Officer

Operations 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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