The Out Licensing Agreement is a critical document used when a business wants to monetize its intellectual property by granting rights to third parties while maintaining ownership. This agreement is particularly relevant in the Pakistani market where businesses seek to expand their reach through strategic partnerships and technology transfer arrangements. The document combines international licensing best practices with compliance requirements under Pakistani law, including the Patents Ordinance 2000, Copyright Ordinance 1962, and other relevant commercial legislation. It typically includes detailed provisions on license scope, territory restrictions, royalty structures, quality control measures, and termination rights. The agreement is especially important for international companies entering the Pakistani market or local companies expanding their business through licensing arrangements.
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1. Parties: Identification of licensor and licensee with full legal names and addresses
2. Background: Context of the agreement, ownership of IP, and purpose of the licensing arrangement
3. Definitions: Detailed definitions of technical terms, licensed IP, territory, and other key concepts
4. Grant of License: Scope of license, territory, exclusivity/non-exclusivity, and field of use
5. License Fees and Royalties: Payment terms, calculation of royalties, minimum guarantees, and payment procedures
6. Protection of IP Rights: Obligations regarding IP protection, registration, and enforcement
7. Quality Control: Standards for using licensed IP and quality maintenance requirements
8. Representations and Warranties: Statements about IP ownership, right to license, and other assurances
9. Term and Termination: Duration of agreement, renewal terms, and termination circumstances
10. Post-Termination Obligations: Rights and obligations after agreement ends
11. Confidentiality: Protection of confidential information exchanged during the agreement
12. Governing Law and Dispute Resolution: Choice of Pakistani law and dispute resolution mechanisms
13. General Provisions: Standard clauses including force majeure, notices, and assignment
1. Technology Transfer: Include when technical know-how or support is part of the license
2. Local Manufacturing: Required when license includes local production requirements
3. Export Restrictions: Include when territorial restrictions affect export rights
4. Improvements: Include when parties need to address rights to future improvements
5. Sub-licensing Rights: Include when licensee is permitted to sub-license
6. Regulatory Compliance: Include for heavily regulated industries (e.g., pharmaceuticals)
7. Marketing and Promotion: Include when specific marketing obligations exist
8. Training and Support: Include when ongoing technical support is required
1. Schedule A - Licensed IP: Detailed description of patents, trademarks, or other IP being licensed
2. Schedule B - Territory: Detailed description of geographic territories covered
3. Schedule C - Royalty Calculations: Detailed formulas and examples for calculating royalties
4. Schedule D - Quality Standards: Specific quality requirements and testing procedures
5. Schedule E - Technical Specifications: Technical details of licensed technology or products
6. Schedule F - Approved Sub-contractors: List of approved manufacturers or service providers
7. Schedule G - Reporting Templates: Standard forms for royalty reporting and other required reports
8. Appendix 1 - Contact Details: Key contact persons and their details for both parties
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