The Perpetual License Agreement serves as a crucial document for businesses seeking to grant or obtain permanent rights to intellectual property. This agreement type is commonly used in software licensing, technology transfers, and other scenarios where ongoing access to proprietary assets is required. Under U.S. jurisdiction, it provides a comprehensive framework for defining usage rights, protecting intellectual property, and establishing the responsibilities of both parties. The document typically includes provisions for payment terms, warranties, support arrangements, and termination conditions, even though the license itself is perpetual.
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1. Parties: Identification of licensor and licensee with full legal names and addresses
2. Background: Context of the agreement and brief description of the licensed property
3. Definitions: Key terms used throughout the agreement including Licensed Property, Territory, etc.
4. Grant of License: Scope of the license, including rights granted and restrictions
5. License Fee: Payment terms and conditions for the perpetual license
6. Intellectual Property Rights: Ownership and protection of IP rights
7. Warranties and Representations: Standard warranties regarding ownership and right to license
8. Limitation of Liability: Limits on liability and damages
9. Term and Termination: Duration and conditions for termination despite perpetual nature
1. Maintenance and Support: Terms for ongoing support if offered - include when ongoing support is part of the agreement
2. Source Code Escrow: Terms for source code protection - include for software licenses where source code protection is needed
3. Export Controls: Compliance with export regulations - include when licensed property may be subject to export controls
4. Data Protection: Privacy and data handling requirements - include when personal data processing is involved
1. Schedule A - Licensed Property: Detailed description of the licensed property/technology
2. Schedule B - Technical Specifications: Technical details and requirements
3. Schedule C - Fee Schedule: Detailed breakdown of license fees and payment terms
4. Schedule D - Support and Maintenance Terms: Details of support services if included
5. Schedule E - Acceptable Use Policy: Terms of acceptable use for the licensed property
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