1. ANATOMY OF A LICENSE AGREEMENT

2. Licensor, Licensee and Licensed Property Title to the Intellectual Property being licensed Written agreement Licensing Agreements

3. Contractual Provisions Licensed Property o Definite and Specific o Use in respect of specific goods / services

4. Contractual Provisions Grant of License o Definite o Limitation / Identification of rights licensed o Extent of permitted use – whole or part o Exclusive or Non-exclusive – Licensor Limitation and Conditions for Licensee o Territory o Sub-license and retention of right to license to others for other uses

5. Consideration o Popular models  Fixed payment  Royalty  Fixed payment + Royalty o Calculation, payment intervals, currency o Account statements o Applicability of foreign exchange regulations Contractual Provisions

6. Termination o Term and renewal o Notice period for termination o Specific conditions – material breaches  Failure to pay royalties  Failure to maintain quality controls  Failure to maintain confidentiality  Failure to meet estimated sales targets/levels  Breach of representations and warranties

7. Proprietary rights o Ownership – acknowledgement and waiver by Licensee o Protection – support in registration Infringement o By third party or of third party’s o Right to defend – Licensor or Licensee o Notice of infringement Contractual Provisions

8. Confidentiality o Definition and exemptions Indemnification o Notification of a claim Liquidated damages o Reasonable – anticipated or actual harm caused Contractual Provisions

9. Dispute resolution o Mutual negotiations o Arbitration – arbitral tribunal; jurisdiction; venue; language Governing Law and Jurisdiction o Exclusion of laws and/or jurisdiction o Exclusive jurisdiction to courts of a country Contractual Provisions

10. Himanshu Chahar C-10, Gulmohar Park, New Delhi – 110049 Tel: +91-11-41662861 Fax: +91-11-41662862 E-mail: hchahar@lexcounsel.in; lexcounsel@lexcounsel.in