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Non Exclusive Patent License Agreement for Canada

Non Exclusive Patent License Agreement Template for Canada

A comprehensive legal agreement governed by Canadian federal and provincial laws that enables a patent holder to grant non-exclusive rights to use their patented technology to another party while retaining the right to license the same patent to others. The document outlines the scope of permitted use, territorial restrictions, royalty payments, quality control measures, and compliance requirements under Canadian patent law. It includes provisions for patent protection, infringement handling, and termination conditions, all while ensuring compliance with Canadian competition laws and intellectual property regulations.

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Non Exclusive Patent License Agreement

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What is a Non Exclusive Patent License Agreement?

The Non-Exclusive Patent License Agreement is essential in situations where a patent holder wishes to monetize their intellectual property while maintaining the flexibility to grant similar rights to multiple licensees. This document, structured under Canadian law, provides a framework for licensing arrangements that comply with both federal and provincial regulations. It is particularly useful in commercial scenarios where widespread adoption of a technology is desired, or when the patent holder wants to maximize market penetration while maintaining control over their intellectual property. The agreement typically includes detailed provisions on royalty structures, usage rights, quality control, and compliance with Canadian patent and competition laws. It's commonly used in technology transfer, research commercialization, and industrial applications where multiple market players may benefit from access to the same patented technology.

What sections should be included in a Non Exclusive Patent License Agreement?

1. Parties: Identification of the Licensor and Licensee with full legal names and addresses

2. Background: Context of the agreement, brief description of the patent(s), and the parties' intentions

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

4. Grant of License: Scope of the non-exclusive license, permitted uses, and any territorial restrictions

5. License Fee and Royalties: Payment terms, royalty rates, calculation methods, and payment schedules

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

7. Protection of Patent Rights: Obligations regarding patent protection, infringement notification, and enforcement

8. Representations and Warranties: Standard warranties regarding patent ownership, right to license, and non-infringement

9. Confidentiality: Protection of confidential information exchanged during the license period

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

11. Post-Termination Obligations: Obligations and rights of parties after agreement termination

12. General Provisions: Standard clauses including governing law, notices, assignment, and amendment procedures

What sections are optional to include in a Non Exclusive Patent License Agreement?

1. Sublicensing Rights: Include when licensee is permitted to sublicense the patent rights to third parties

2. Improvements: Include when parties want to address ownership and licensing of improvements to the patented technology

3. Quality Control: Include when licensed patent relates to products requiring quality standards

4. Marketing and Promotion: Include when specific marketing requirements or restrictions apply

5. Technical Support: Include when licensor will provide technical assistance or support

6. Export Control: Include when licensed technology is subject to export control regulations

7. Insurance: Include when specific insurance requirements are needed for risk management

What schedules should be included in a Non Exclusive Patent License Agreement?

1. Schedule A - Licensed Patents: Detailed list of licensed patents including registration numbers and jurisdictions

2. Schedule B - Royalty Calculations: Detailed methodology for calculating royalties, including examples if needed

3. Schedule C - Technical Specifications: Technical details and specifications related to the licensed patents

4. Schedule D - Reporting Requirements: Templates and requirements for periodic reporting

5. Schedule E - Approved Sublicensees: List of pre-approved sublicensees if applicable

6. Appendix 1 - Form of Royalty Report: Standard template for royalty reporting

7. Appendix 2 - Quality Control Standards: Detailed quality control requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Licensing Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Technology

Manufacturing

Pharmaceuticals

Biotechnology

Telecommunications

Automotive

Electronics

Chemical

Medical Devices

Software Development

Research & Development

Clean Technology

Consumer Goods

Relevant Teams

Legal

Intellectual Property

Research and Development

Business Development

Technology Transfer

Innovation

Commercial Operations

Licensing

Technical Operations

Corporate Strategy

Patents and Trademarks

Relevant Roles

Chief Technology Officer

Intellectual Property Manager

Patent Attorney

Legal Counsel

Licensing Manager

Research and Development Director

Business Development Manager

Innovation Director

Technology Transfer Officer

Commercial Director

Patent Portfolio Manager

Chief Legal Officer

Chief Innovation Officer

Technical Operations Manager

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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