Template Technology Licensing Agreement
Template Technology Licensing Agreement
Template Technology Licensing Agreement
between
[LICENSOR]
and
[LICENSEE]
ARTICLE I
DEFINITIONS
ARTICLE II
TECHNICAL INFORMATION
2.01 (a) LICENSOR shall, within thirty (30) days of receipt of the initial
payment from LICENSEE pursuant to Section 5.01(a) or within a reasonable
time of a written request thereafter for a LICENSED SITE transfer, commence
furnishing the TECHNICAL INFORMATION listed in Appendix B to
LICENSEE or its SUPPLIERS, as the LICENSEE may direct, subject to the
restrictions of Section 2.02.
ARTICLE III
TECHNICAL SERVICES
(b) The initial fee of Section 5.01(a) of the license includes technical
services for each of two LICENSED SITES, the LICENSED SITES may at
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LICENSEE’S discretion be either at an internal LICENSEE location or at a
SUPPLIER location, of:
(1) two (2) man days (eight (8) hrs. blocks) of training at
LICENSOR’S Avon, Conn. Facility for each site.
(2) two (2) man days (eight (8) hrs. blocks) of off-site training
(outside of Avon, Conn.) for each site; and
(5) The initial training sessions for the subparagraphs b(1) and
b(2) of this Section 3.01 shall be video taped at LICENSEE’S
expense and those training video tapes held for LICENSEE’S
use by LICENSOR in accordance with paragraph (d) of this
section.
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Training Fee Schedule:
3.02 LICENSOR, LICENSEE and its SUPPLIERS shall at all times retain
the administrative supervision of their respective personnel.
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III after such services have been rendered hereunder, and LICENSEE or its
SUPPLIERS shall make payment of all amounts so billed within forty five (45)
days after receipt of such invoices.
ARTICLE IV
GRANTS OF LICENSES
4.01 Subject to Section 4.03 and to the extent it has a right to,
LICENSOR grants to LICENSEE personal, nontransferable, nonexclusive
licenses in the LICENSED TERRITORY to use the TECHNICAL
INFORMATION for the purposes of (i) using, distributing, importing, selling,
or offering for sale the LICENSED PRODUCTS; and (ii) manufacturing,
designing and testing of, or having manufactured, designed and tested, the
LICENSED PRODUCTS only at LICENSED SITES (subject to Section 4.04
(b)).
4.02 Subject to Section 4.03 and to the extent it has a right to,
LICENSOR grants to LICENSEE under the SPECIFIED PATENT personal,
nontransferable and nonexclusive licenses in the LICENSED TERRITORY to
make, have made (subject to Section 4.04 (b)) use, lease, repair (but not
reconstruct), support, maintain, distribute, import, offer-to-sell and sell
LICENSED PRODUCTS manufactured with the use of the TECHNICAL
INFORMATION pursuant to Section 4.01 hereof.
4.3 The Parties acknowledge that any products, software and technical
information (including, but not limited to, services and training)
provided under this Agreement are subject to U.S. export laws and
regulations and any use or transfer of such products, software, and
technical information must be authorized under those regulations.
LICENSEE agrees that it will not use, distribute, transfer or transmit
the products, software, or technical information (even if incorporated
into other products) except in compliance with U.S. export
regulations. If reasonably requested by LICENSOR, LICENSEE
also agrees to sign written assurances and other export-related
documents as may be required for LICENSOR to comply with U.S.
export regulations.
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4.04(a) The licenses granted in Sections 4.01 and 4.02 exclude any other
right not expressly granted to LICENSEE including, but not limited to, the
right to sublicense any of its rights or any other implied rights.
4.05 (a) LICENSEE and its Suppliers shall, without charge to LICENSOR,
promptly disclose to LICENSOR all ENHANCEMENTS to the LICENSED
PROCESS, which is information originated or developed by LICENSEE’S or
its SUPPLIERS’ personnel solely or jointly with any other Party, prior to the
expiration this Agreement (“LICENSEE and SUPPLIER
ENHANCEMENTS”). LICENSEE and its SUPPLIERS shall retain all right,
title and interest in and to any LICENSEE and SUPPLIER
ENHANCEMENTS solely made.
(b) To the extent each has the right to, LICENSEE and its SUPPLIERS
grant to LICENSOR unrestricted, nontransferable (subject to Section 8.10),
irrevocable, nonexclusive, royalty free licenses, with the right to grant
sublicenses, to use, practice or have practiced the LICENSEE and SUPPLIER
ENHANCEMENTS with the LICENSED PROCESS for any purpose
including making, using, distributing, importing, selling or offering for sale
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articles made using such LICENSEE and SUPPLIER ENHANCEMENTS with
the LICENSED PROCESS.
(c) The licenses granted in Section 4.05 (b) exclude any other right not
expressly granted to LICENSOR including, but not limited to, any other
implied rights.
(d) LICENSEE and its SUPPLIERS shall not be held to any liability
for errors or omissions in the LICENSEE and SUPPLIER
ENHANCEMENTS. LICENSEE and its SUPPLIERS disclaim any
representations or warranties, either express, implied or implied by law.
By way of example, but not of limitation, LICENSEE and its SUPPLIERS
make no representations or warranties of merchantability, fitness for any
particular purpose, or that the use of the LICENSEE and SUPPLIER
ENHANCEMENTS, or any part of them will not infringe any patent,
copyright, trademark or other intellectual property rights of any third
party, and it shall be the sole responsibility of LICENSOR to make such
determination as is necessary with respect to the acquisition of licenses
under other patents or other intellectual property rights of third parties.
LICENSEE and its SUPPLIERS shall not be held to any liability with
respect to any patent infringement or any other claim made by
LICENSOR, its SUBSIDIARIES or any third party on account of, or
arising from the use of the LICENSEE and SUPPLIER
ENHANCEMENTS or any of part of them.
(f) LICENSEE and its SUPPLIERS shall have the right, but not the
obligation, to license any such LICENSOR ENHANCEMENTS at
commercially reasonable royalty rates and terms.
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LICENSOR as TECHNICAL INFORMATION under the terms of this
Agreement.
ARTICLE V
5.01(a) As partial consideration for the rights and licenses granted under
Sections 4.01 and 4.02 by LICENSOR to LICENSEE, LICENSEE shall pay to
LICENSOR a one-time, non-refundable payment of [UP FRONT PAYMENT
AMOUNT] dollars (U.S. $[AMOUNT]). The one-time payment shall be paid
to in two parts: (1) [PARTIAL AMOUNT 1] Dollars (U.S. $[AMOUNT]) shall
be paid to LICENSOR within sixty (60) days of the Effective Date of the
Agreement and (2) [PARTIAL AMOUNT 2] Dollars (U.S. $[AMOUNT]) shall
be paid to LICENSOR upon the first LICENSEE or SUPPLIER site to receive
the TECHNICAL INFORMATION becoming a QUALIFIED LICENSED
SITE or to ship acceptable LICENSED PRODUCTS to LICENSEE. Under
no circumstances shall such payments or any portion thereof be refunded to
LICENSEE or credited with respect to any royalties due under Sections
5.01(b).
(b) Royalty shall be payable to LICENSOR at the rate set forth in U.S.
dollars in the accompanying Appendix E for each of the LICENSED
PRODUCTS which is manufactured, sold, leased or put into use by
LICENSEE, or which is manufactured and sold to LICENSEE by a
SUPPLIER during the term of this Agreement:
For clarification, the running royalty due per unit is to be paid by the
SUPPLIER or the LICENSEE depending upon which is the manufacturer of a
particular unit.
(c) Royalty shall accrue on any unit of the LICENSED PRODUCTS upon the
first manufacture and sale of such LICENSED PRODUCTS and shall become
payable in accordance with the provisions of Articles V and VI herein.
Obligations to pay accrued royalties by the LICENSEE or its SUPPLIERS
shall survive termination of the licenses and rights pursuant to Article VII.
(d) LICENSEE is responsible for and will promptly pay all overdue royalties
owed by its SUPPLIERS.
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ARTICLE VI
6.01 (a) LICENSEE shall keep full, clear and accurate records with respect to
LICENSED PRODUCTS manufactured, sold, leased, or put into use by it or
those purchased from a SUPPLIER. LICENSEE’S SUPPLIERS shall keep
full, clear and accurate records with respect to LICENSED PRODUCTS
manufactured and sold to LICENSEE by them. LICENSEE and its
SUPPLIERS shall retain such records with respect to each LICENSED
PRODUCT for at least five (5) years from the manufacture, sale, lease or
putting into use of such LICENSED PRODUCT.
(b) Upon reasonable notice, LICENSOR shall have the right through its
independent accredited auditing representatives, and at its expense, to make an
examination and audit, during normal business hours, not more frequently than
annually, of all such records and such other records and accounts as may under
recognized accounting practices contain information bearing upon the amounts
of fees or royalties payable to it under this Agreement. Prompt adjustment
shall be made by the proper Party to compensate for any errors or omissions
disclosed by such examination or audit. Neither such right to examine and
audit nor the right to receive such adjustment shall be affected by any
statement to the contrary, appearing on checks or otherwise, unless such
statement appears in a letter, signed by the Party having such right and
delivered to the other Party, expressly waiving such right. All information
obtained in the course of conducting an audit shall be kept confidential and
used only for the purpose of determining proper royalty payments under this
Agreement.
6.02(a) Within forty five (45) days after the end of each annual period ending
on December 31, commencing with the annual period during which this
Agreement first becomes effective, LICENSEE or its SUPPLIERS shall
furnish to LICENSOR a statement indicating:
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(ii) The type of [PRODUCT] manufactured by the LICENSED
PROCESS (by manufacturer or SUPPLIER), solely for the
purposes of calculating the appropriate royalty under Section 5.01
(b) above; and
(b) Within such forty five (45) days, LICENSEE or its SUPPLIERS
shall, irrespective of its own business and accounting methods, pay in United
States dollars to LICENSOR the fees or royalties payable for such annual
period as shown in the statement required by Section 6.02(a). LICENSEE or
its SUPPLIERS shall furnish whatever additional information (limited solely to
determining proper payment of royalties pursuant to this Agreement)
LICENSOR may reasonably prescribe from time to time to enable LICENSOR
to ascertain the fees payable hereunder. Such statement, together with the
payment for the fees or royalties shown therein, shall be sent to LICENSOR at
its address specified in Section 6.06(a).
6.03 LICENSEE and its SUPPLIERS shall be solely responsible for its
personnel's remuneration and their travel, living and other expenses, including
those incurred in visiting any locations of LICENSOR. LICENSEE and its
SUPPLIERS shall also be solely responsible for any tax or other governmental
charge, however designated, which is imposed on LICENSEE or its personnel
by any country or by any agency or political subdivision thereof as a result of
the existence or operation of this Agreement or as the result of the activities of
Licensee’s personnel.
6.04 LICENSEE or its SUPPLIERS shall bear all taxes, duties, levies, and
other similar charges (and any related interest and penalties), however
designated, imposed as a result of the existence or operation of this Agreement,
except, (i) any tax imposed upon LICENSOR or its SUPPLIERS in a
jurisdiction other than the United States if such tax is allowable as a credit
against the United States income taxes of LICENSOR; (ii) any net income tax
imposed upon LICENSOR by the United States within the United States; and
(iii) any tax for which a valid tax exemption certificate is furnished by
LICENSEE or its SUPPLIERS to LICENSOR. In order for the exception
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contained in (i) to apply, LICENSEE or its SUPPLIERS must furnish
LICENSOR with such evidence as may be required by the United States taxing
authorities to establish that such a tax has been paid within thirty (30) days of
issuance of such evidence by the local taxing authority so that LICENSOR
may claim the credit.
ARTICLE VII
7.01 This Agreement shall be effective during its Term which commences
on the Effective Date and extends until the expiration of the entire SPECIFIED
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PATENT unless terminated earlier pursuant to the provisions hereof. After the
SPECIFIED PATENT has expired, the LICENSOR and LICENSEE may
renew this Agreement upon mutual consent in writing within sixty (60) days of
the expiration.
7.02 If a Party shall fail to fulfill one or more of its material obligations
under this Agreement, or if that Party shall fail to fully comply with all the
requirements of United States law or other law applicable to this Agreement, to
the extent that any such failure is not attributable to any failure on the part of
the other Party to perform any of its obligations under this Agreement, the
other Party may, upon its election and in addition to any other remedies that it
may have, at any time terminate all of its obligations hereunder and all of the
licenses and rights granted by it hereunder by not less than two (2) months
written notice to the other Party specifying any such breach or failure, unless
within the period of such notice all grounds specified therein for termination
pursuant to this Section 7.02(a) shall have been remedied. A material breach of
any obligation of a SUPPLIER shall be considered only to be a material breach
of the Agreement by such SUPPLIER with this Agreement potentially
terminating only with respect to such breaching SUPPLIER.
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manufactured prior to the termination of LICENSEE’S rights hereunder or the
termination of this Agreement, and their obligations with respect to any other
payments for services rendered and expenses incurred prior to such termination
shall survive and continue after any such termination.
ARTICLE VIII
MISCELLANEOUS PROVISIONS
8.01 This Agreement shall prevail in the event of any conflicting terms or
legends, which may appear on documents, or the TECHNICAL
INFORMATION furnished hereunder.
8.02 (a) LICENSOR and its SUBSIDIARIES shall not be held to any liability
for errors or omissions in the TECHNICAL INFORMATION or LICENSOR’S
ENHANCEMENTS. LICENSOR represents that the TECHNICAL
INFORMATION is sufficient to enable LICENSOR to manufacture
LICENSOR’S products of a similar nature and is generally consistent with the
TECHNICAL INFORMATION provided to other licensees of LICENSOR,
but LICENSOR does not make any representations or guarantees that such
TECHNICAL INFORMATION is sufficient to enable LICENSEE or its
SUPPLIERS to manufacture LICENSED PRODUCTS.
(b) LICENSOR also represents that it has been using the technology
disclosed in the TECHNICAL INFORMATION since November 2001 and that
to its knowledge there have been no claims asserted by third parties against the
technology and that there are not now any presently asserted or pending claims
or litigations against the technology known as of the Effective Date.
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infringement or any other claim made by LICENSEE, its SUPPLIERS or
any third party on account of, or arising from the use of the TECHNICAL
INFORMATION, LICENSOR ENHANCEMENTS, the SPECIFIED
PATENT or any of part of them.
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TECHNICAL INFORMATION confidential, it will not use the
TECHNICAL INFORMATION except for the purpose of
supplying to LICENSEE the LICENSED PRODUCTS
described therein, it will make reports and pay royalties under
the license, and it will return all such TECHNICAL
INFORMATION and all copies thereof on demand of
LICENSOR;
(v) that LICENSEE and its SUPPLIERS agree that they will not,
without LICENSOR’S express written permission, (a) use in
advertising, publicity, or otherwise any trade name, trademark,
trade device, service mark, symbol or any other identification
or any abbreviation, contraction or simulation thereof owned
or used by LICENSOR, or (b) represent, directly or indirectly,
that any product or service produced in whole or in part is
made in accordance with or utilizes any information or
documentation of LICENSOR.
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receive or have access to private or confidential information of LICENSEE or
a SUPPLIER. LICENSOR agrees that all such information shall be treated in
a like manner by LICENSOR as LICENSEE/SUPPLIER is expected to treat
the TECHNICAL INFORMATION under article VIII hereunder, so long as the
confidential information is marked as proprietary or confidential or
LICENSOR is on notice that such private or confidential information is
proprietary to LICENSEE or a SUPPLIER or, if not in tangible form, only if
summarized in a writing so marked and delivered to LICENSOR within thirty
(30) days of such disclosure, in which case such private or confidential
information contained in such summary (not information contained solely in the
non-tangible disclosure) shall be subject to the restrictions of this Agreement.
8.07(a) Neither Party shall be liable for any loss, damage, delay or failure of
performance resulting directly or indirectly from any cause which is beyond its
reasonable control, including but not limited to acts of God, extraordinary
traffic conditions, riots, civil disturbances, wars, states of belligerency or acts
of the public enemy, strikes, work stoppages, or the laws, regulations, acts or
failure to act of any governmental authority.
8.09(a) This Agreement, in the English language, sets forth the entire
agreement and understanding between the Parties as to the subject matter
hereof and merges all prior discussions between them, and neither of the
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Parties shall be bound by any conditions, definitions, warranties,
understandings or representations with respect to such subject matter other
than as expressly provided herein, or in any prior existing written agreement
between the Parties, or as duly set forth on or subsequent to the Effective Date
in writing and signed by a proper and duly authorized representative of the
Party to be bound thereby.
(b) To the extent that the provisions of any other agreement to which
LICENSOR and LICENSEE are Parties, are inconsistent with the provisions of
this Agreement, the provisions of this Agreement shall control as to the subject
matter hereof.
8.10 This Agreement shall not be assigned nor transferred, either in whole
or in part, by either LICENSEE or LICENSOR without the other Party’s
written consent, such consent shall not to be unreasonably withheld, delayed or
conditioned, provided LICENSOR may assign all or any part of its rights and
obligations to any successor in interest of the business to which this Agreement
relates or to any of its SUBSIDIARIES.
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(d) The arbitrator shall be knowledgeable in the legal and technical
aspects of this Agreement and shall determine issues of arbitrability but may
not limit, expand or otherwise modify the terms of the Agreement.
(e) The place of mediation and arbitration shall be Atlanta, Georgia.
(f) Each Party shall bear its own expenses but those related to the
compensation and expenses of the mediator and arbitrator shall be borne
equally.
(g) A request by a Party to a court for interim measures shall not be
deemed a waiver of the obligation to mediate and arbitrate.
(h) The arbitrator shall not have authority to award punitive or other
damages in excess of compensatory damages and each Party irrevocably
waives any claim thereto.
(i) The Parties, their representatives, other participants and the mediator
and arbitrator shall hold the existence, content and result of mediation and
arbitration in confidence.
(j) Notwithstanding the foregoing, no provision hereof shall limit the
right of any Party to obtain equitable relief, including without limitation
injunctive relief, from a court of competent jurisdiction before, after or
concurrent with mediation, arbitration or other proceeding.
8.12 All article headings are for convenience purposes only and shall in no
way affect, or be used in, the interpretation of this Agreement.
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ARTICLE IX
(b) All requests for information, documents and technical assistance and
training services shall be made by LICENSEE or its SUPPLIERS in writing, or
if made orally then confirmed in writing within seven (7) days after such
request has been made, to the organization designated in Section 9.01(a).
LICENSOR shall acknowledge requests made pursuant to this Section 9.01(b)
in writing and shall within fourteen (14) days after the receipt of the written
request indicate whether it will or will not comply with such request or propose
an alternative to such request.
[LICENSOR]
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By:
[NAME]
[TITLE]
[COMPANY]
Date:
[LICENSEE]
By:
[NAME]
[TITLE]
[COMPANY]
Date:
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APPENDIX A
DEFINITIONS
1
SUBSIDIARY of a company means a corporation or other legal entity (i) the
majority of whose shares or other securities entitled to vote for election of
directors (or other managing authority) is now or hereafter controlled by such
company either directly or indirectly; or (ii) which does not have outstanding
shares or securities but the majority of whose ownership interest representing
the right to manage such corporation or other legal entity is now or hereafter
owned and controlled by such company either directly or indirectly; but any
such corporation or other legal entity shall be deemed to be a SUBSIDIARY of
such company only as long as such control or ownership and control exists.
2
APPENDIX B
1
APPENDIX C
Qualification Specifications
[QUALIFICATION SPECIFICATIONS]
2
APPENDIX D
APPROVED SUPPLIERS
1
APPENDIX E
ROYALTY RATES