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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.
Payment Terms & Royalties
Negotiation strategy
Ensure that the payment terms are clear and enforceable. Include audit rights to verify royalty calculations and consider minimum guarantees to secure predictable income.
Negotiate for flexible payment schedules that align with cash flow. Ensure transparency in royalty calculations and seek to limit penalties for late payments.
Essential elements
1
Payment Schedule
Defines timing of payments.
2
Royalty Calculation
Details method for calculating royalties.
3
Audit Rights
Allows verification of payments.
Action framework
ACCEPT
Propose edits if payment terms are unclear or do not align with financial projections.
EDIT
Reject clauses that impose unreasonable penalties or lack transparency.
ADD
Add clauses for minimum guarantees or audit rights if absent.
PRO TIP
Always ensure that royalty calculations are based on clearly defined net sales to avoid disputes.
Real-world examples
FAVORABLE
Preferred Payment Schedule
"The Licensee shall pay the Licensor the royalties due under this Agreement on a quarterly basis, within thirty (30) days following the end of each calendar quarter. The payment shall be accompanied by a statement detailing the calculation of the royalties due for the relevant period."
NEUTRAL
Standard Royalty Calculation
"Royalties shall be calculated based on the net sales of the licensed products, defined as gross sales less returns, discounts, and allowances. The royalty rate shall be [insert percentage] of net sales."
UNFAVORABLE
Unclear Payment Terms
"Payments shall be made as agreed upon by both parties without a specified schedule."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, consider including more frequent audit rights and higher minimum guarantees to mitigate financial uncertainty.
International Agreements
For international agreements, ensure compliance with local tax laws and currency exchange regulations to avoid legal complications.
Start-Up Licensees
For start-up licensees, negotiate flexible payment terms that accommodate cash flow constraints while ensuring eventual compliance with standard terms.
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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