Apparel license agreement template

A license agreement is the basis for every merchandise licensing transaction. Typically the licensor and licensee put together the best written agreement so they can both profit. When it comes to the merchandise licensing agreement , there are several aspects to consider. If there are trademarks or copyrightsnecessary to the property, the licensee should state the registration numbers. Grant of Rights: This states that the licensee has the right to manufacture, import, distribute, and market licensed products.

Exclusive rights mean that nobody else has the same rights in the territory, while nonexclusive rights mean that.

See full list on upcounsel. The licensor wants to make sure that the licensee makes an effort to manufacture and sell all of the licensed products, especially if the license is exclusive. The licensor might also want the licensee to guarantee that royalties will reach a specific amount. There might also be minimum sales requirements to make sure the licensee actively sells the products.

In addition, the licensor might want the licensee to commit a specific amount of money to advertise the products. To receive compensation for the licensing agreement , you need to look at the royalty percentage and the base against that percentage is applied. Other aspects of royaltiesinclude the following: 1. Base: Most instances have the royalty amount determined by multiplying the rate by the net sales of the licensed products.

To determine net sales, you must take into account the wholesale price. In this instance, the retailer buys licensed products from the licensee but takes delivery at the factory. Oftentimes, royaltiesare paid on a quarterly basis, with payment due usually days after the end of each quarter. If the licensee fails to perform under the written licensing agreement , the licensor wants the rights to terminate the agreement prior to the end of the term. Most agreements have three categories for termination: 1. Events that are grounds for immediate termination without a cure period 2. During that time, the licensee has a chance to fix the situation as determined by the licensor.

After termination, the licensee might want the right to distribute any remaining products. You must have enforceable rights to the design and protection. If you need a patent, contact the U. Patent and Trademark Office.

However, if you want to license your design in other countries, U. The licensee should pay you every time a licensed product is sold. The agreement should also specify how and when you get paid. The payment could come in a flat-rate or royalty-based form, but the licensing agreement should use clear examples to explain the process. There should also be a stated minimum sales target and guaranteed royalties to meet or exceed. This agreement constitutes the entire agreement between the parties hereto and shall not be modifie amended or changed in any way except upon a written agreement signed by both parties.

The “licensor” is the owner of the intellectual property while the “ licensee” is the one granted the license.

Licensor: the person who owns the intellectual property 2. Without this agreement , the owner of valuable IP would not be able to make money on that IP or control how the IP is used out in the world. Licensee: the person who wants to use the intell. And individuals and companies that need certain IP to grow their business or make a living might not be able to have access to it.

The issuance fee can be paid up-front (a paid-up license ) or in installments. The fee can be a pre-purchase where the Licensor agrees to purchase an inventory of licenses, a minimum commitment where the Licensor agrees to purchase a minimum amount of licenses at defi. What is the intellectual property being licensed 3. When will the license end or be renewed 5. Clothing and Apparel. Includes companies that manufacture apparel , finished products of fabrics and similar material, furnishings, clothing , outerwear, undergarments, and textile products.

Agreement is properly exercised. There are however other good reasons to consider running the. Instant Downloa Mail Paper Copy or Hard Copy Delivery, Start and Order Now! THE BASICS OF A MERCHANDISE LICENSE AGREEMENT.

The license agreement is at the heart of every merchandise licensing transaction. While there are some generally accepted rules in the industry, the licensor and the licensee are usually free to put together the best deal that each can negotiate. While it may seem like extra work, in the long run, it will save you time and money. Any parts of the agreement below that are marked in red are variables that should be changed to accommodate your business. ENTIRE AGREEMENT : This Contact and List(s) of Inventory constitutes the entire agreement between the parties hereto.

This sample agreement is for general use. GOVERNING LAW: This Contract and its enforcement shall be governed by and construed in accordance with the law of the State of California, without regard to the State of California principles of conflicts of law. Find below this image we inserted a download button for downloading this software license template you click on button and download this template for your own. AML of an order, contract, non-disclosure agreement , private label manufacturing agreement and deposit by Customer. Customer is required to purchase preproduction samples at a cost of $150.

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