The License Agreement Before Settlement is a strategic legal instrument used in intellectual property disputes under Austrian jurisdiction where parties seek to establish a temporary working relationship while negotiating a final resolution. This document type is particularly relevant when immediate cessation of IP use would cause significant business disruption, but parties are willing to work toward an amicable solution. It combines elements of both licensing and dispute resolution, providing a framework for continued IP use while protecting the rights holder's interests. The agreement must comply with Austrian civil law, particularly the ABGB (Austrian Civil Code), and relevant IP legislation. It typically includes detailed provisions for license scope, royalty payments, quality control, and specific conditions that must be met before reaching a final settlement. This type of agreement is often used in technology transfers, patent disputes, or trademark licensing scenarios where maintaining business continuity during dispute resolution is crucial.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the dispute and reason for the pre-settlement license arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. License Grant: Scope, nature, and limitations of the license being granted
5. Settlement Conditions: Conditions that must be met before final settlement
6. License Fee and Payment Terms: Financial terms including licensing fees, royalties, and payment schedules
7. Term and Termination: Duration of the license and circumstances for termination
8. Intellectual Property Rights: Confirmation of IP ownership and rights retention
9. Warranties and Representations: Warranties regarding IP ownership, right to license, and other key assurances
10. Confidentiality: Obligations regarding confidential information
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Governing Law and Jurisdiction: Confirmation of Austrian law application and jurisdiction
13. General Provisions: Standard boilerplate clauses including notices, amendment process, and severability
1. Quality Control: Required for trademark licenses to maintain quality standards
2. Source Code Escrow: Relevant for software license agreements
3. Territory Restrictions: Used when license is limited to specific geographical areas
4. Sub-licensing Rights: Include when sub-licensing is permitted
5. Performance Obligations: Specific requirements for licensee's use of the licensed IP
6. Audit Rights: Right to audit licensee's use of IP and royalty calculations
7. Data Protection: Required if personal data processing is involved
8. Insurance Requirements: Specific insurance obligations for high-risk licenses
1. Schedule 1 - Licensed IP: Detailed description of the intellectual property being licensed
2. Schedule 2 - Technical Specifications: Technical details and requirements for the licensed IP
3. Schedule 3 - Royalty Calculations: Detailed methodology for calculating royalties
4. Schedule 4 - Settlement Terms: Detailed terms and conditions for final settlement
5. Schedule 5 - Implementation Timeline: Timeline for implementing the license and meeting settlement conditions
6. Appendix A - Approved Use Cases: Specific approved uses of the licensed IP
7. Appendix B - Quality Standards: Quality requirements and specifications if applicable
8. Appendix C - Reporting Templates: Templates for required periodic reports
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