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PLAYBOOK TEMPLATES

Trademark License Agreement

A Trademark License Agreement permits the use of a registered mark under defined quality and brand standards. This playbook covers negotiation of territorial rights, royalty models, and enforcement of brand integrity.

Indemnification & Liability

Why This Matters: Unbalanced indemnity provisions may leave a party exposed to unlimited liability and high defense costs. Proper caps and carve-outs help manage potential financial exposure.

Negotiation strategy

If you're the Licensor:

Negotiate for a mutual indemnification clause to ensure both parties share the risk. Insist on a liability cap that limits exposure to a reasonable amount based on the contract value.

If you're the Licensee:

Ensure indemnification obligations are clearly defined and limited to specific scenarios. Advocate for exclusions on consequential damages to protect against excessive claims.

Essential elements

1

Indemnification Obligations

Defines indemnity responsibilities.
2

Defense Obligations

Outlines defense control and costs.
3

Liability Cap

Limits total financial exposure.

Action framework

ACCEPT

Propose edits when indemnification terms are overly broad or lack mutuality.

EDIT

Reject clauses that impose unlimited liability without caps.

ADD

Add language to clarify defense obligations and liability limits.

PRO TIP

Always ensure indemnification clauses are balanced and reflect the negotiated risk allocation.

Real-world examples

FAVORABLE

Balanced Indemnification Clause

"Each party (the 'Indemnifying Party') shall indemnify, defend, and hold harmless the other party (the 'Indemnified Party') from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or related to any third-party claim alleging that the Indemnifying Party's use of the intellectual property infringes or misappropriates any third party's intellectual property rights."
NEUTRAL

Standard Mutual Indemnity

"Both parties agree to indemnify, defend, and hold harmless each other from any third-party claims arising from their respective use of the intellectual property, provided that such use is in accordance with the terms of this Agreement."
UNFAVORABLE

One-Sided Indemnity

"The Licensee shall indemnify, defend, and hold harmless the Licensor from any claims, without reciprocal obligations."

Alternative scenarios & positions

High-Risk IP Use

In contracts involving high-risk intellectual property, such as patented technology, additional indemnification provisions or higher liability caps may be necessary to mitigate potential exposure.

Cross-Border Agreements

Consider jurisdictional differences in liability laws and ensure indemnification clauses comply with local regulations.

Joint Ventures

In joint ventures, ensure indemnification clauses cover shared liabilities and clearly define each party's responsibilities.

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