The License and Supply Agreement is essential for businesses operating in Australia that wish to commercialize intellectual property while maintaining control over product manufacturing and distribution. This agreement is particularly useful when a rights holder wants to authorize another party to both use their intellectual property and manufacture/distribute related products. It combines elements of an IP license (covering patents, trademarks, know-how, or other intellectual property) with detailed supply terms, ensuring quality control and commercial certainty. The document addresses Australian legal requirements, including competition law, consumer protection, and intellectual property rights, while establishing clear commercial terms for ongoing supply relationships. It's commonly used in manufacturing, technology, and consumer goods sectors where IP licensing needs to be coupled with product supply arrangements.
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1. Parties: Identifies and provides details of all parties to the agreement
2. Background: Sets out the context and purpose of the agreement, including brief description of parties' businesses and their intentions
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. License Grant: Specifies the scope, nature (exclusive/non-exclusive), and territory of the license
5. License Restrictions: Details restrictions on use of licensed IP, including prohibited activities and sublicensing terms
6. Supply Terms: Outlines the basic terms of supply, including ordering process and minimum purchase commitments
7. Delivery and Acceptance: Specifies delivery terms, timeframes, and acceptance testing procedures
8. Quality Requirements: Sets out quality standards, specifications, and quality control procedures
9. Fees and Payment: Details license fees, supply prices, payment terms, and review mechanisms
10. Intellectual Property Rights: Establishes ownership of IP, including improvements and new developments
11. Confidentiality: Protects confidential information exchanged under the agreement
12. Term and Termination: Specifies duration, renewal options, and termination rights
13. Warranties and Indemnities: Sets out warranties regarding licensed IP and supplied products, and related indemnities
14. Liability and Insurance: Addresses limitation of liability and insurance requirements
15. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment
1. Manufacturing Requirements: Include when supplier must manufacture products according to specific standards or processes
2. Marketing and Promotion: Include when agreement covers marketing obligations or restrictions
3. Training and Support: Include when technical support or training is part of the arrangement
4. Export Controls: Include for international arrangements or products subject to export restrictions
5. Data Protection: Include when personal data processing is involved
6. Anti-Bribery and Corruption: Include for international deals or when required by corporate policies
7. Environmental Compliance: Include when environmental standards or sustainability requirements are important
8. Change Control: Include when formal process for changes to specifications or requirements is needed
9. Service Levels: Include when specific performance metrics need to be maintained
10. Disaster Recovery: Include when business continuity is critical to the supply arrangement
1. Product Specifications: Detailed technical specifications of products to be supplied
2. Price List: Detailed pricing for all products and services, including any volume discounts
3. Licensed IP: Detailed description of licensed intellectual property
4. Quality Standards: Specific quality requirements and testing procedures
5. Service Levels: Detailed service level requirements and measurement metrics
6. Territory: Detailed description of licensed/supply territory including any exclusions
7. Approved Sublicensees: List of approved sublicensees if applicable
8. Manufacturing Specifications: Detailed manufacturing requirements and processes
9. Support Services: Detailed description of support services to be provided
10. Reporting Requirements: Templates and specifications for required reports
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