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Limited Use Agreement Template for Germany

A Limited Use Agreement governed by German law is a legally binding contract that establishes specific terms and conditions for the restricted use of proprietary content, software, technology, or other intellectual property. This agreement, compliant with German Civil Code (BGB) and relevant intellectual property laws, defines the precise scope of permitted usage, limitations, and obligations of the user while protecting the rights holder's interests. It includes specific provisions required under German law regarding liability limitations, consumer protection (where applicable), and data protection requirements under GDPR.

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What is a Limited Use Agreement?

The Limited Use Agreement serves as a critical legal instrument for controlling and protecting intellectual property rights while granting specific, limited usage permissions to designated users. This document type is particularly relevant when organizations or individuals need to provide restricted access to their proprietary content, software, or other intellectual property while maintaining strict control over its use. Under German jurisdiction, these agreements must comply with the German Civil Code (BGB), intellectual property laws, and where applicable, consumer protection regulations and GDPR requirements. The agreement is commonly used in software licensing, content distribution, research materials access, and technology transfer scenarios, providing clear parameters for authorized use while protecting the rights holder's interests through specific German law provisions.

What sections should be included in a Limited Use Agreement?

1. Parties: Identification and details of the contracting parties, including registered addresses and authorized representatives

2. Background: Context of the agreement and general purpose of the limited use arrangement

3. Definitions: Defined terms used throughout the agreement, including 'Licensed Material', 'Permitted Use', and 'Term'

4. Grant of Rights: Specific details of the limited use rights being granted, including scope and restrictions

5. Usage Restrictions: Clear enumeration of prohibited uses and limitations on the granted rights

6. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

7. Payment Terms: Fee structure, payment schedule, and related financial obligations

8. User Obligations: Specific responsibilities and requirements of the user when utilizing the licensed material

9. Intellectual Property Rights: Confirmation of ownership and protection of intellectual property

10. Warranties and Representations: Statements regarding the licensed material and authority to enter agreement

11. Liability and Indemnification: Limitations of liability and indemnification obligations under German law

12. Confidentiality: Obligations regarding confidential information exchange

13. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Limited Use Agreement?

1. Data Protection: Required when personal data processing is involved, addressing GDPR compliance

2. Technical Requirements: Include when specific technical conditions or systems are necessary for use

3. Support and Maintenance: Required when ongoing technical support or maintenance services are provided

4. Audit Rights: Include when licensor requires rights to audit usage compliance

5. Insurance: Include when specific insurance coverage is required for high-risk uses

6. Export Control: Required when licensed material may be subject to export regulations

7. Source Code Escrow: Include for software licenses where source code escrow is relevant

8. Consumer Protection Provisions: Required when one party is a consumer under German law

What schedules should be included in a Limited Use Agreement?

1. Schedule 1 - Licensed Material: Detailed description of materials covered by the limited use rights

2. Schedule 2 - Permitted Uses: Specific enumeration of authorized uses and use cases

3. Schedule 3 - Technical Specifications: Technical requirements and specifications for use

4. Schedule 4 - Fee Schedule: Detailed breakdown of fees and payment terms

5. Schedule 5 - Service Levels: Performance standards and metrics if applicable

6. Appendix A - Security Requirements: Security protocols and requirements for use of licensed material

7. Appendix B - Contact Details: Key contacts for various aspects of agreement administration

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

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Use Agreement

Cost

Free to use

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