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Intercompany License Agreement

Intercompany License Agreement Template for Australia

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Key Requirements PROMPT example:

Intercompany License Agreement

"Need to draft an Intercompany License Agreement for software IP transfer from our Australian parent company to its Singapore subsidiary, with exclusive rights in Southeast Asia and royalty payments of 5% of net sales."

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Document background
The Intercompany License Agreement is essential for corporate groups operating in Australia who need to formalize the sharing of intellectual property, technology, or other proprietary assets between related entities. This document is particularly crucial when establishing clear boundaries and terms for the use of corporate assets while ensuring compliance with Australian regulatory requirements, including the Corporations Act 2001, Competition and Consumer Act 2010, and relevant tax legislation. It serves multiple purposes: maintaining proper corporate governance, establishing clear audit trails for regulatory compliance, ensuring appropriate transfer pricing arrangements, and protecting intellectual property rights within the corporate group. The agreement is commonly used during group restructuring, establishment of new subsidiaries, or implementation of global licensing strategies.
Suggested Sections

1. Parties: Identification and details of the licensor and licensee entities, including registered addresses and company details

2. Background: Context of the agreement, relationship between the parties, and purpose of the license arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of License: Specific rights being granted, including scope, territory, and whether exclusive or non-exclusive

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. License Fees and Payment Terms: Financial terms including royalties, payment schedule, and calculation methods

7. Intellectual Property Rights: Ownership and protection of IP, including improvements and derivatives

8. Confidentiality: Protection of confidential information exchanged between parties

9. Warranties and Representations: Statements of fact and promises made by each party

10. Limitation of Liability: Extent and limitations of each party's liability

11. General Provisions: Standard clauses including governing law, notices, and amendment procedures

Optional Sections

1. Quality Control: Required when the license involves manufacturing or product development

2. Technical Support: Include when ongoing technical assistance is part of the arrangement

3. Data Protection: Required when personal or sensitive data will be shared between parties

4. Export Control: Include for cross-border licensing arrangements

5. Source Code Escrow: Required for software licensing agreements

6. Transfer Pricing Compliance: Include when significant value is being transferred between related entities

7. Change of Control: Include when continuity of license rights in case of ownership changes is important

Suggested Schedules

1. Licensed IP: Detailed description of intellectual property being licensed

2. Technical Specifications: Technical details and requirements of licensed technology or products

3. Royalty Calculations: Detailed methodology for calculating license fees and royalties

4. Service Levels: Performance metrics and standards if applicable

5. Approved Sub-licensees: List of approved third parties if sub-licensing is permitted

6. Related Agreements: List of associated agreements between the parties

7. Compliance Requirements: Specific regulatory or corporate compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




























Clauses






























Relevant Industries

Technology

Manufacturing

Pharmaceuticals

Consumer Goods

Financial Services

Energy

Telecommunications

Media and Entertainment

Automotive

Professional Services

Relevant Teams

Legal

Intellectual Property

Finance

Tax

Compliance

Corporate Governance

Business Development

Commercial

Risk Management

Company Secretariat

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Chief Legal Officer

Corporate Governance Manager

Licensing Manager

Chief Financial Officer

Tax Director

Compliance Officer

Head of Business Development

Corporate Secretary

General Counsel

IP Rights Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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