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Use License Agreement Template for United States

A Use License Agreement is a legal document that establishes the terms and conditions under which one party (licensor) grants another party (licensee) the right to use specific products, software, content, or intellectual property. Under U.S. law, this agreement is governed by federal copyright law, state contract laws, and potentially industry-specific regulations. It defines usage rights, restrictions, payment terms, and obligations of both parties while protecting the licensor's intellectual property rights.

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What is a Use License Agreement?

A Use License Agreement serves as the primary legal framework for controlling and monetizing the use of proprietary assets in the United States. This document is essential when an organization wants to permit others to use their intellectual property while maintaining ownership and control. It addresses key aspects such as scope of use, payment terms, restrictions, and compliance with federal and state regulations. The agreement is particularly relevant in today's digital economy where software, content, and other intellectual property are frequently licensed rather than sold outright.

What sections should be included in a Use License Agreement?

1. Parties: Identification of licensor and licensee, including legal entities and addresses

2. Background: Context of the agreement and brief description of the licensed material/product

3. Definitions: Key terms used throughout the agreement

4. Grant of License: Scope and nature of the license being granted

5. License Fees: Payment terms and fee structure

6. Term and Termination: Duration of license and conditions for termination

7. Use Restrictions: Limitations and prohibited uses of the licensed material

8. Intellectual Property Rights: Ownership and IP protection clauses

9. Governing Law: Applicable jurisdiction and dispute resolution

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

1. Support and Maintenance: Terms for technical support and updates (include when software or technical products are being licensed)

2. Service Level Agreement: Performance standards and metrics (include for software or platform licenses with uptime requirements)

3. Data Protection: Privacy and data handling provisions (include when personal data processing is involved)

4. Territory Restrictions: Geographical limitations on use (include for territorially restricted licenses)

5. Sub-licensing Rights: Terms for allowing licensee to grant sub-licenses (include when sub-licensing is permitted)

What schedules should be included in a Use License Agreement?

1. Schedule 1 - Licensed Materials: Detailed description of licensed products/materials

2. Schedule 2 - Fee Schedule: Detailed breakdown of license fees and payment terms

3. Schedule 3 - Technical Specifications: Technical details and requirements for software or technical products

4. Schedule 4 - Service Level Requirements: Detailed performance metrics and standards when SLA is included

5. Schedule 5 - Acceptable Use Policy: Detailed usage guidelines and restrictions

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

United States

Publisher

Genie AI

Sector

IP

Cost

Free to use

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