The Character License Agreement is a crucial legal instrument used when intellectual property owners wish to grant rights to use their characters for commercial purposes in Malaysia. This agreement is essential for businesses looking to leverage popular characters for merchandise, media, or other commercial applications while ensuring proper protection under Malaysian law. It addresses key aspects such as IP rights, territorial limitations, quality control, royalty structures, and approval processes, incorporating requirements from Malaysian intellectual property legislation including the Copyright Act 1987 and Trademarks Act 2019. The document is particularly relevant in today's digital age where character licensing spans multiple platforms and territories, requiring careful consideration of both traditional and digital rights management.
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1. Parties: Identification of the licensor and licensee
2. Background: Context of the agreement and brief description of the character
3. Definitions: Key terms used throughout the agreement
4. Grant of Rights: Scope of license, territory, and term
5. Licensed Character: Detailed description of the character and associated intellectual property
6. Term and Territory: Duration of the agreement and geographical scope
7. License Fees and Royalties: Payment terms, royalty rates, and reporting requirements
8. Quality Control: Approval processes and quality standards for character use
9. Protection of IP Rights: Obligations regarding IP protection and enforcement
10. Representations and Warranties: Standard warranties about ownership and right to license
11. Termination: Circumstances allowing termination and consequences
12. Confidentiality: Protection of confidential information
13. General Provisions: Standard boilerplate clauses including governing law
1. Minimum Guarantee: Used when there's a minimum payment requirement regardless of sales
2. Sublicensing Rights: Include when licensee is permitted to sublicense the character
3. Digital Rights: Specific provisions for digital use, including NFTs and virtual worlds
4. Merchandise Approval Process: Detailed procedures for merchandise approval when relevant
5. Marketing and Promotion: Requirements for marketing the licensed products
6. Character Style Guide: When specific style requirements need to be followed
7. Exclusivity Provisions: When the license is exclusive in certain territories or categories
8. Content Restrictions: When specific content restrictions apply to character usage
1. Schedule 1 - Character Description: Detailed description and images of the licensed character
2. Schedule 2 - Licensed Products: List of approved products/categories for character use
3. Schedule 3 - Territory: Detailed breakdown of territorial rights and restrictions
4. Schedule 4 - Royalty Rates: Detailed royalty structure for different product categories
5. Schedule 5 - Style Guide: Visual guidelines for character usage
6. Schedule 6 - Approval Procedures: Detailed steps for obtaining approvals
7. Schedule 7 - Minimum Performance Requirements: Sales targets and minimum guarantee details
8. Appendix A - Character Artwork: Official artwork and assets provided for licensed use
Relevant legal definitions
Clauses
Relevant Industries
Entertainment
Media
Publishing
Gaming
Retail
Manufacturing
Digital Technology
Consumer Goods
Toys and Games
Fashion and Apparel
Education
Advertising
Relevant Teams
Legal
Intellectual Property
Commercial
Licensing
Business Development
Creative
Product Development
Marketing
Merchandising
Compliance
Brand Management
Relevant Roles
Licensing Manager
Intellectual Property Counsel
Commercial Director
Brand Manager
Legal Counsel
Business Development Manager
Creative Director
Merchandising Manager
Contract Administrator
IP Rights Manager
Product Development Manager
Marketing Director
Compliance Officer
Commercial Lawyer
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