The Perpetual Royalty License agreement is designed for situations where permanent intellectual property rights are being granted while maintaining an ongoing financial relationship between the parties. This document is particularly suited for high-value intellectual property transactions where the licensor wishes to monetize their IP through a permanent grant of rights while receiving regular royalty payments. Under Irish law, this agreement type requires careful consideration of intellectual property rights, competition law, and tax implications. The document includes essential provisions for protecting the licensed IP, establishing clear royalty calculation and payment mechanisms, and ensuring compliance with Irish regulatory requirements. It's commonly used in technology licensing, patent commercialization, and brand licensing scenarios where long-term exploitation of intellectual property is desired.
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1. Parties: Identification of the licensor and licensee, including registered addresses and company details
2. Background: Context of the agreement, description of the intellectual property being licensed, and the parties' intentions
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Grant of Rights: Detailed description of the licensed rights, scope, territory, and confirmation of perpetual nature
5. Royalty Payments: Royalty rates, calculation methods, payment frequency, and currency
6. Payment Terms: Payment mechanics, bank details, late payment interest, taxes
7. Reporting and Audit Rights: Requirements for sales reporting, record-keeping, and licensor's audit rights
8. Representations and Warranties: Parties' representations regarding IP ownership, authority to contract, and standard warranties
9. IP Protection: Obligations regarding IP protection, infringement notification, and enforcement rights
10. Confidentiality: Protection of confidential information exchanged under the agreement
11. Breach and Remedies: Definition of breach events and available remedies
12. Governing Law and Jurisdiction: Confirmation of Irish law and jurisdiction
1. Quality Control: Required if the license involves trademarks or branding requirements
2. Sublicensing Rights: Include if the licensee is permitted to sublicense the rights
3. Minimum Royalty Guarantees: Include if there are minimum payment obligations
4. Source Code Escrow: Required if the license involves software
5. Data Protection: Include if personal data processing is involved
6. Export Control: Required if the licensed material may be subject to export regulations
7. Insurance: Include if specific insurance requirements are needed
8. Change of Control: Include if license rights are affected by change in company ownership
1. Schedule 1 - Licensed Intellectual Property: Detailed description of all IP being licensed, including registration numbers
2. Schedule 2 - Royalty Calculations: Detailed methodology for calculating royalties, including examples
3. Schedule 3 - Reporting Template: Standard format for regular royalty reports
4. Schedule 4 - Technical Specifications: Technical details of licensed technology or products
5. Schedule 5 - Quality Standards: Quality requirements and testing procedures if applicable
6. Appendix A - Approved Sub-contractors: List of approved sub-contractors if relevant
7. Appendix B - Territory Definition: Detailed description of geographic scope of license
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