Licence for Manufacture and Sale (A126)

Who can use this Licence?

The inventor or designer of a product can use this licence for manufacture and sale.

What is this Licence for?

The licence sets out the agreed terms under which the inventor provides designs etc.,  and the manufacturer makes the products and then sells them. The designer/inventor receives a licence fee plus royalties on all sales.

What are the main issues?

Firstly, the scope of the licence and whether it is exclusive and/or allows sub-licensing.

The territory in which the manufacturer can make sales will also be specified.

The duration of the licence will usually be quite long – five or ten years.  It will also deal with the role of the inventor in the development phase before the product is finally launched.

Fees and royalties need to be spelt out. There is often an upfront licence fee paid to the designer and then a percentage of sales.  The licensor should have access to the manufacturer’s accounts and records to verify sales and royalties.

Intellectual property rights are important: the designer/inventor will retain ownership but there may be shared ownership of improvements in some cases.  Infringement of IP rights also needs to be covered.

What detailed terms does the Licence contain?

This is a seven page document with 14 main clauses covering

• definitions
• licence
• duration
• fees and royalties
• records and royalty payments
• development programme and manufacture
• territory
• improvements
• confidentiality
• intellectual property
• infringement of intellectual property rights
• termination
• law and disputes
• general clause detailing notice, assignment, the scope of the agreement, waiver and severability

For more information on each of these sections, see our Explanatory Notes  which you will  receive when you download the document from our website.

If you have any questions about a contract and/or want to see these Notes before you buy, please let us know by using our contact form

For information on signing documents see our Contract Signing page

When I download the document, can I change it and/or use it more than once?

Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs

Legal support

ContractStore supplies templates and is not a law firm.  But all our templates are written by experienced lawyers so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.

And if you want to contact us see our Contacts page.