Checklist Drafting Merchandising License Agreements

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Introduction and Parties

1.1. Confirm full legal names and addresses of Licensor (Intellectual Property owner) and Licensee (Merchandiser):

- Licensor: {{licensor_company_name}}, {{licensor_company_address}}

- Licensee: {{licensee_company_name}}, {{licensee_company_address}}

1.2. Define effective date of agreement: {{effective_date}}

1.3. Clearly state the purpose of the agreement: Granting of rights to produce and distribute merchandise based on Licensor's intellectual property.

Grant of License

2.1. Specify the intellectual property being licensed (e.g., trademarks, copyrights, characters, designs): {{intellectual_property_description}}

2.2. Define the exact scope of the license (e.g., specific products, services, territories):

- Products/Services: {{licensed_products_services}}

- Territory: {{licensed_territory}}

2.3. State whether the license is exclusive, non-exclusive, or sole: {{exclusivity_type}}

2.4. Detail the term of the license agreement, including commencement and expiration dates: {{start_date}} to {{end_date}}

2.5. Include provisions for renewal or extension of the license, if applicable: {{renewal_terms}}

Financial Terms

3.1. Royalty Rate: Specify the percentage or fixed amount royalty to be paid by Licensee to Licensor: {{royalty_rate}}% of {{basis_of_royalty}}

3.2. Minimum Guarantees: Outline any minimum royalty payments or sales targets: {{minimum_guarantee_amount}} by {{minimum_guarantee_date}}

3.3. Advance Payments: Detail any upfront payments required: {{advance_payment_amount}} payable by {{advance_payment_due_date}}

3.4. Payment Schedule: Define frequency and method of royalty payments: {{payment_frequency}} via {{payment_method}}

3.5. Reporting Requirements: Mandate regular sales and royalty reports from Licensee: {{reporting_frequency}} on {{reporting_due_date}}

3.6. Audit Rights: Grant Licensor the right to audit Licensee's records: {{audit_frequency}} with {{audit_notice_period}} days' notice.

Quality Control and Approvals

4.1. Product Samples: Require Licensee to submit samples of all licensed products for Licensor's approval prior to production: {{sample_submission_timeline}}

4.2. Quality Standards: Stipulate quality standards and technical specifications for licensed products: {{quality_standards_reference}}

4.3. Marketing and Advertising Materials: Mandate approval for all promotional and advertising materials related to the licensed products: {{marketing_approval_timeline}}

4.4. Usage of Intellectual Property: Define guidelines for correct usage of trademarks, logos, and other IP elements: {{ip_usage_guidelines_reference}}

Representations, Warranties, and Indemnities

5.1. Licensor Warranties: Confirm Licensor's ownership of IP and right to grant license: {{licensor_warranties_details}}

5.2. Licensee Warranties: Confirm Licensee's ability to perform obligations and comply with laws: {{licensee_warranties_details}}

5.3. Indemnification: Include clauses for each party to indemnify the other against third-party claims arising from breaches of the agreement: {{indemnification_scope}}

Termination

6.1. Grounds for Termination: Specify conditions under which either party can terminate the agreement (e.g., material breach, insolvency, change of control): {{termination_grounds}}

6.2. Notice Period for Termination: Define the required notice period for termination: {{termination_notice_period}} days

6.3. Effects of Termination: Outline the obligations of both parties upon termination (e.g., cessation of production, inventory disposal, return of IP assets): {{effects_of_termination}}

General Provisions

7.1. Governing Law: State the jurisdiction whose laws will govern the agreement: {{governing_law_jurisdiction}}

7.2. Dispute Resolution: Outline the process for resolving disputes (e.g., negotiation, mediation, arbitration): {{dispute_resolution_process}}

7.3. Confidentiality: Include clauses protecting confidential information shared between parties: {{confidentiality_terms}}

7.4. Assignment: Specify conditions under which the agreement can or cannot be assigned: {{assignment_terms}}

7.5. Force Majeure: Include provisions for unforeseen circumstances impacting performance: {{force_ majeure_clause}}

7.6. Entire Agreement: State that the document constitutes the entire agreement between the parties.

Signature Block

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

LICENSOR:

_____________________________

Name: {{licensor_signatory_name}}

Title: {{licensor_signatory_title}}

Date: {{licensor_signature_date}}

LICENSEE:

_____________________________

Name: {{licensee_signatory_name}}

Title: {{licensee_signatory_title}}

Date: {{licensee_signature_date}}