Intercompany License Agreement

Intercompany License Agreement Template for Denmark

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Document background

The Intercompany License Agreement is essential for multinational corporations and group companies operating under Danish jurisdiction who need to formalize the sharing and usage of intellectual property rights, technology, or proprietary assets between related entities. This document is particularly crucial when establishing clear boundaries for IP usage, ensuring compliance with transfer pricing regulations, and maintaining proper corporate governance within group structures. It includes detailed provisions for license scope, payment terms, quality control, and compliance with Danish legal requirements, making it suitable for various types of intellectual property transfers between affiliated companies. The agreement helps organizations maintain proper documentation for tax authorities, protect IP rights, and establish clear operational guidelines while ensuring alignment with both Danish and international legal frameworks.

Suggested Sections

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

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

3. Definitions: Defined terms used throughout the agreement, including technical terms, IP definitions, and group company references

4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and any field of use restrictions

5. License Fees and Payment Terms: Financial terms, payment schedules, and transfer pricing compliance statements

6. Intellectual Property Rights: Ownership confirmation, protection of IP rights, and handling of improvements or derivatives

7. Quality Control: Standards for use of licensed IP and quality assurance requirements

8. Confidentiality: Protection of confidential information exchanged under the agreement

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Consequences of Termination: Actions required upon termination and surviving obligations

11. Liability and Indemnification: Allocation of risks and responsibilities between group companies

12. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Sublicensing Rights: Include when the licensee needs the right to sublicense to other group companies

2. Technical Support and Maintenance: Include for software or technical licenses requiring ongoing support

3. Data Protection: Include when licensed activities involve processing of personal data

4. Export Control: Include when licensed technology is subject to export control regulations

5. Source Code Escrow: Include for software licenses where source code access may be required

6. Training and Implementation: Include when license requires specific training or implementation support

7. Audit Rights: Include when specific audit requirements beyond standard group company oversight are needed

8. Marketing and Branding: Include for trademark or brand-related licenses

Suggested Schedules

1. Schedule 1 - Licensed IP: Detailed description of all intellectual property covered by the license

2. Schedule 2 - Technical Specifications: Technical details and requirements for licensed technology or software

3. Schedule 3 - Service Levels: Performance standards and metrics if applicable

4. Schedule 4 - Fee Schedule: Detailed breakdown of license fees and payment terms with transfer pricing methodology

5. Schedule 5 - Quality Standards: Specific quality requirements and compliance standards

6. Appendix A - Group Company List: List of relevant group companies covered by or related to the agreement

7. Appendix B - Contact Details: Key contacts for operational, technical, and legal matters

8. Appendix C - Transfer Pricing Documentation: Supporting documentation for transfer pricing compliance

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