When an invention is an industrial process, one uses a license to use to grant permission to use that invention. Although admittedly similar, a license to use differs from a manufacturing license (see template H04300) in that the latter involves the right to create a product rather than the right to use a process.

A licence to use an industrial process is often part of a larger project that includes a construction agreement to build the installation where the industrial process will be used.

This template provides the legal, financial and technical framework required in the context of when a patentee allows others to use its patented process.

The license to use an industrial process is usually part of a contractual framework including, on one hand, the construction of an industrial facility and, on the other hand, the grant of a right to use the process to be used in the industrial facility.

The contractual framework can vary considerably depending on the number of operations required (i.e. setting up a joint venture, execution of a construction agreement for the installation, contracting for procurement, etc…) to establish the physical infrastructure required for these operations. The license to use is the final step of this contractual framework as it gives the entire setup its true economic value.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Application
0.01.04 Best Effort
0.01.05 Breach
0.01.06 Change in Control
0.01.07 Confidential Information
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Improvement
0.01.13 Intellectual Property
0.01.14 Know-how
0.01.15 Launch Date
0.01.16 Legal Representatives
0.01.17 PARTY
0.01.18 Patent
0.01.19 Person
0.01.20 Prime Rate
0.01.21 Products
0.01.22 Related Person
0.01.23 Start of Operations Date
0.01.24 Subsidiary
0.01.25 Technology
0.01.26 Territory
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Grant
1.02 Conditions
1.02.01 Required by PATENTEE
1.02.02 Required by USER
1.02.03 Choice
2.00 CONSIDERATION
2.01 Initial Fee
2.02 Royalties
2.03 Subscription Option
2.03.01 Grant
2.03.02 Terms
2.03.03 Price
2.04 Related Agreement
3.00 TERMS OF PAYMENT
3.01 Initial Fee
3.01.01 First Instalment
3.01.02 Balance
3.02 Royalties
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
4.01 In favour of PATENTEE
4.02 In favour of USER
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE PATENTEE
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Patent
6.09 Ownership
6.10 No Warranty of Results
7.00 REPRESENTATIONS AND WARRANTIES OF THE USER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Canadian Control
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE PATENTEE
9.01 Exclusivity
9.02 Peaceful Enjoyment
9.03 Execution
9.04 First Refusal Right
9.04.01 Undertaking
9.04.02 Acknowledgement
9.04.03 Procedure
9.04.04 Response
9.04.05 Closing
9.04.06 Abuse of Right
10.00 DUTIES AND OBLIGATIONS OF THE USER
10.01 Technical and Financial Feasibility Study
10.02 Best Effort
10.03 Commercial Plan
10.04 Quality Control
10.05 Building of Plant
10.06 Related Agreement
10.07 Performance Schedule
10.08 Property of PATENTEE
10.09 Deviation from the Technology
10.10 Inspection of Plants
10.11 Modifications
10.12 Accounting Report
10.13 Improvements
10.13.01 Notice
10.13.02 Included Improvement
10.13.03 Patent Applications
10.13.04 Undertaking by Employees
10.14 Validity of the Patent
10.15 Bookkeeping
10.15.01 Undertaking
10.15.02 Inspection
10.16 Execution
11.00 SPECIAL PROVISIONS
11.01 Protection of the Technology
11.01.01 Undertaking by USER
11.01.02 Individual Action
11.01.03 Delivery of Documents
11.01.04 Undertaking by PATENTEE
11.01.05 Settlement
11.01.06 Indemnity
11.02 Non-liability
11.03 Assignment
11.03.01 Prohibition
11.03.02 Effect of Breach
11.03.03 Exception
11.04 Force Majeure
11.04.01 No Default
11.04.02 Duty
11.04.03 Rights of Other PARTY
11.05 Relationship
11.05.01 Independent Contractors
11.05.02 No Control over Performance
11.05.03 No Authority to Bind
11.06 Further Assurances
11.07 Other Remedies
11.07.01 Choices
11.07.02 No Limitations
11.08 Prescription
11.09 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Resiliation
13.03.01 Without Notice
13.03.02 Prior Notice
13.04 Change in Control
13.05 End of Agreement Procedure
13.05.01 Unpaid Royalties
13.05.02 Prohibition
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE PATENTEE
SCHEDULE B – EXCERPT FROM A RESOLUTION OF THE USER
SCHEDULE 0.01.18 – PATENT
SCHEDULE 2.02 – ROYALTY CALCULATIONS