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Manufacturing License Agreement

This Manufacturing License Agreement grants a licensee the right to manufacture products using the licensor's intellectual property. It is suitable for businesses looking to expand their production capabilities or license their designs.

Updated 15d ago
manufacturinglicense agreementintellectual propertyproductionlicensingSMEAfrica

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

MANUFACTURING LICENSE AGREEMENT

This Manufacturing License Agreement ("Agreement") is made and entered into as of this {{day}} day of {{month}}, {{year}} ("Effective Date"), By and Between:

{{licensor_company_name}}, a company duly incorporated under the laws of {{country}}, with its principal place of business at {{licensor_address}} (hereinafter referred to as "Licensor"); and

{{licensee_company_name}}, a company duly incorporated under the laws of {{country}}, with its principal place of business at {{licensee_address}} (hereinafter referred to as "Licensee").

Collectively referred to as the "Parties" and individually as a "Party".

BACKGROUND

A. The Licensor is the owner of certain intellectual property, including without limitation, designs, specifications, trademarks, and know-how related to the manufacture of {{product_description}} (hereinafter referred to as the "Licensed Products").

B. The Licensee desires to obtain a license from the Licensor to manufacture the Licensed Products in accordance with the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

GRANT OF LICENSE

1.1. The Licensor hereby grants to the Licensee, and the Licensee hereby accepts, a non-exclusive/exclusive (delete as applicable), non-transferable license to manufacture, market, distribute and sell the Licensed Products within the territory of {{territory}} (the "Territory") for a term of {{term_in_years}} years commencing from the Effective Date, unless sooner terminated as provided herein.

1.2. The Licensee shall manufacture the Licensed Products strictly in accordance with the specifications, quality standards, and manufacturing processes provided by the Licensor, attached hereto as Schedule A.

ROYALTIES AND PAYMENTS

2.1. In consideration for the license granted herein, the Licensee shall pay to the Licensor a royalty of {{royalty_percentage}}% of the net sales price of all Licensed Products manufactured and sold by the Licensee. "Net Sales Price" shall mean the gross sales price less any returns, allowances, and sales taxes.

2.2. Royalty payments shall be made on a quarterly basis, within {{days}} days after the end of each calendar quarter. Each payment shall be accompanied by a detailed statement of sales for that quarter, in a format acceptable to the Licensor.

2.3. The Licensee shall pay an upfront license fee of {{upfront_fee_currency}} {{upfront_fee_amount}} to the Licensor upon the execution of this Agreement, which shall be non-refundable and non-creditable against future royalties.

INTELLECTUAL PROPERTY RIGHTS

3.1. The Licensee acknowledges that all intellectual property rights related to the Licensed Products, including but not limited to designs, patents, trademarks, and copyrights, remain the sole property of the Licensor.

3.2. The Licensee shall not directly or indirectly challenge the validity or ownership of the Licensor's intellectual property rights.

3.3. The Licensee shall prominently display any trademarks, logos, or other intellectual property designations of the Licensor on the Licensed Products and their packaging as instructed by the Licensor.

CONFIDENTIALITY

4.1. Both Parties agree to keep confidential all non-public information disclosed by one Party to the other, whether written or oral, concerning their business, products, services, and operations under this Agreement.

4.2. This confidentiality obligation shall survive the termination or expiration of this Agreement for a period of {{confidentiality_period_years}} years.

WARRANTIES AND INDEMNIFICATION

5.1. The Licensor warrants that it has the full right and authority to grant the license contemplated herein and that the Licensed Products, to the best of its knowledge, do not infringe upon the intellectual property rights of any third party.

5.2. The Licensee shall indemnify, defend, and hold harmless the Licensor from and against any and all claims, damages, liabilities, costs, and expenses (including reasonable legal fees) arising out of or in connection with the manufacture, distribution, or sale of the Licensed Products by the Licensee, except to the extent caused by the gross negligence or willful misconduct of the Licensor.

TERMINATION

6.1. This Agreement may be terminated by either Party in the event of a material breach by the other Party, provided that the breaching Party is given {{notice_period_days}} days' written notice to cure such breach and fails to do so.

6.2. Upon termination, all rights granted to the Licensee hereunder shall immediately revert to the Licensor, and the Licensee shall immediately cease all manufacture, marketing, and sale of the Licensed Products and return all confidential information and materials provided by the Licensor.

GOVERNING LAW AND DISPUTE RESOLUTION

7.1. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

7.2. Any dispute, controversy, or claim arising out of or in connection with this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the arbitration rules of {{arbitration_institution}} in {{arbitration_city}}, {{country}}.

ENTIRE AGREEMENT

8.1. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

SIGNATURES

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date first written above.

FOR AND ON BEHALF OF {{licensor_company_name}}:

___________________________

Name: {{licensor_representative_name}}

Title: {{licensor_representative_title}}

Date: {{licensor_signature_date}}

FOR AND ON BEHALF OF {{licensee_company_name}}:

___________________________

Name: {{licensee_representative_name}}

Title: {{licensee_representative_title}}

Date: {{licensee_signature_date}}

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