The person who invents a new product does not necessarily have the financial resources to manufacture and market it on a large scale. This template sets out the legal and financial framework that applies when an inventor gives a third party the exclusive right to manufacture and market the invention in a specific territory in exchange for consideration.

On the other hand, a person who invents a new product may have the financial means to market the invention, but may be lacking the necessary human and material resources, in which case, the inventor may wish to retain the services of a subcontractor (see template G03200) or distributor (see template K02200). This allows the inventor to play a coordinating role and maintain some control over all manufacturing and marketing activities concerning the invention.

Using this manufacturing licence agreement template will allow each party to contribute to the project without requiring the creation of a partnership. With this type of agreement, the inventor of the new product can collaborate with a manufacturing and distribution firm to access the market at a lower cost. Conversely, the owner of the manufacturing and distribution facilities can expand its product range at a lower cost.

Designing a new product requires a special expertise, as does manufacturing and marketing the product. A particular person or business does not necessarily have the required expertise in all these areas or the resources to fund such activities. This is why the collaboration of third parties will likely be required to ensure the commercial success of the new product, which is the purpose of our Manufacturing License Agreement.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Best Effort
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Confidential Information
0.01.07 Encumber or Encumbrance
0.01.08 Event of Default
0.01.09 Force Majeure
0.01.10 Fundamental Provisions
0.01.11 Improvement
0.01.12 Industrial Property
0.01.13 Intellectual Property
0.01.14 Law
0.01.15 Legal Representatives
0.01.16 Mould
0.01.17 PARTY
0.01.18 Patent
0.01.19 Person
0.01.20 Prime Rate
0.01.21 Product
0.01.22 Prototype
0.01.23 Related Person
0.01.24 Revenue
0.01.25 Specifications
0.01.26 Subsidiary
0.01.27 Technology
0.01.28 Templates
0.01.29 Territory
0.01.30 Trade-mark
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 OWNER
1.02.02 Required by LICENSEE
1.02.03 Choice
2.00 CONSIDERATION
2.01 Initial Fee
2.02 Royalties
2.03 Minimal Royalties
3.00 TERMS OF PAYMENT
3.01 Initial Fee
3.02 Royalties
3.03 Minimal Royalty
3.04 Location of Payment
3.05 Waiver
3.06 Interest
3.07 Loss of Term
4.00 SECURITY
4.01 In favour of OWNER
4.02 In favour of LICENSEE
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 OWNER
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 Rights on the Technology
6.09 Registration
6.10 Proceedings
6.11 Patent
6.12 Patent Ownership
6.13 Prescribed Fees
6.14 Abuse of Right
6.15 Trade-mark
6.16 Grant of Rights
7.00 REPRESENTATIONS AND WARRANTIES OF THE LICENSEE
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 Resources
7.09 Proceedings
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 OWNER
9.01 Rights on the Technology
9.01.01 Exclusivity
9.01.02 Peaceful Enjoyment
9.02 Delivery
9.02.01 Intellectual Property
9.02.02 Industrial Property
9.03 Technical Support
9.03.01 Training
9.03.02 Prototype
9.03.03 Moulds and Templates
9.03.04 Help
9.04 Improvements
9.05 Counterfeiture
9.05.01 Patents
9.05.02 Trade-mark
9.05.03 Copyright and Industrial Design
9.06 Warranties and Indemnification
9.06.01 Warranty
9.06.02 Costs
9.06.03 Other damages
9.07 Liability Insurance
9.08 Taxes
10.00 DUTIES AND OBLIGATIONS OF THE LICENSEE
10.01 Territory
10.02 Manufacturing
10.02.01 License
10.02.02 Supervision
10.02.03 Compliance with Laws and Standards
10.02.04 Compliance
10.02.05 Templates and Moulds
10.02.06 Prototype
10.02.07 Visit
10.03 Subcontracting/Supply
10.03.01 Authorization
10.03.02 Confidentiality
10.03.03 Indemnification
10.03.04 Insurance
10.04 Improvements
10.04.01 Notice
10.04.02 Included Improvements
10.04.03 Patent Application
10.04.04 Undertaking by Employees
10.05 Commercialization
10.05.01 Trade-mark
10.05.02 Promotional Effort
10.05.03 Legal Publicity
10.05.04 Pricing Policy
10.05.05 Sales Target
10.05.06 Liquidation
10.06 After-sale Service
10.06.01 Warranty
10.06.02 Maintenance
10.06.03 Replacement Parts
10.07 Intellectual Property
10.07.01 No Contest
10.07.02 Infringement on Rights
10.08 Rendering Account
10.08.01 Quarterly Report
10.08.02 Accounting Reports
10.08.03 Accounting Inspection
10.08.04 Waiver
10.09 Indemnification
10.10 Insurance
10.10.01 Subscription
10.10.02 Counterparts
10.10.03 Indemnification
10.11 Non-competition
10.11.01 Scope
10.11.02 Adjustments
10.11.03 Penalty
10.11.04 Additional Remedy
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
11.08 Protection of the Technology
11.08.01 Notice
11.08.02 Joint Action
11.08.03 Individual Action
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 Resiliation
13.02.01 Without Notice
13.02.02 Prior Notice
13.03 Change in Control
13.04 End of Agreement Procedure
13.04.01 Unpaid Royalties
13.04.02 Return
13.04.03 Cessation
13.04.04 Retaking
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 Term
15.03 Renewal
15.03.01 Option
15.03.02 Automatic Renewal
15.04 Refusal of Renewal
15.05 Other Renewals
15.06 Survival
15.07 Non Renewal
16.00 SCOPE



SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE OWNER
SCHEDULE B – EXCERPT FROM A RESOLUTION OF LICENSEE
SCHEDULE 0.01.16 – LIST OF MOULDS AND TEMPLATES
SCHEDULE 0.01.18 – LIST OF PATENTS
SCHEDULE 0.01.25 - SPECIFICATIONS
SCHEDULE 0.01.30 – TRADE-MARK
SCHEDULE 9.03.04 – SALARY OF THE OWNER’S EMPLOYEES
SCHEDULE 10.06.01 - WARRANTY