Trademark License Template: A Ready Contract Certified by a Licensed Saudi Lawyer

Category: IP and data
Language: Arabic + English
Format: Editable DOCX

CERTIFICATION RECORD

This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.

Where an Arabic and an English text exist, the Arabic text prevails

A licence contract setting the mark, the classes, the territory, the consideration, and the quality standards, bilingual.

A trademark licence lets another party use your mark on defined goods or services while ownership stays with you. Businesses use it when expanding through an agent, a distributor, or an operating branch, and when allowing a partner to produce goods under the trade name. The point most people miss when they sign a loosely drafted licence is quality control: a mark used without agreed standards loses value in the market and blurs its reputation. Sighaty template I-02 is written for the Saudi context and ties the licence to the mark's registration details with the Saudi Authority for Intellectual Property, covering exclusivity, territory, classes, term, consideration, approval and inspection standards, and what happens when the licence ends, in two parallel languages with the Arabic text prevailing on any difference.

Get the Trademark License TemplateI-02

What this contract is and when you need it

A licence is not a transfer of ownership, it is a permission to use bounded by three limits: on what, where, and for how long. Any licence that fails to fix those three limits opens the door to use of the mark on unapproved goods or in a market that was never agreed, and stopping that use later is hard without a dispute. That is why the template starts from the registered mark and its classes, then builds the scope of permission on top.

Granting an agent or distributor the right to use the mark in a defined territory.
Allowing a manufacturer or partner to produce goods under your mark within set classes.
Governing use of the mark between group companies or with a separate operating entity.

What the smart-fill asks and what you receive

The smart-fill asks for the licensor's and the licensee's names in Arabic and English with each one's commercial registration, the mark itself in Arabic and English, its registration number with the Saudi Authority for Intellectual Property and the registered classes, then the list of goods or services within those classes, and the term.

In the options you set whether the licence is exclusive or non-exclusive, whether its territory is the whole Kingdom or a defined region, whether the consideration is a royalty on net sales paid quarterly or a fixed annual fee together with the rate or amount, whether samples are approved quarterly or before launch, the discrepancy threshold that triggers an audit at the licensee's cost, the cure period for breach and the wind-down periods for ceasing use and selling off approved stock after the end, the liability cap, and the forum for disputes between the commercial court and arbitration at the Saudi Center for Commercial Arbitration. You then receive a formatted bilingual Word document, ready to sign and editable before approval.

Why a lawyer-certified template beats a free download

A free licence is usually two pages saying the other party may use the mark, then silent on everything that matters: how the royalty is calculated and audited, who approves designs and packaging, and what happens to the stock on the day the licence ends. The Sighaty template is certified by a licensed Saudi lawyer and closes those gaps with practical, enforceable clauses, updated as regulations change, so it protects the value of your mark instead of merely permitting its use.

Frequently asked questions

Must the mark be registered before it can be licensed?

The template is built around licensing a registered mark, and it asks you for the registration number with the Saudi Authority for Intellectual Property and the registered classes. A licence resting on an existing registration is clearer in scope and easier to rely on, which is why the smart-fill starts from those details before any other clause.

What is the difference between an exclusive and a non-exclusive licence?

An exclusive licence bars the licensor from granting the same right to anyone else in the agreed scope, and may restrain the licensor's own use there, while a non-exclusive licence leaves the licensor free to license others. The template defaults to non-exclusive because it is the least restrictive for the mark owner, and you can select exclusive at fill-in if the deal calls for it.

What happens to stock bearing the mark when the licence ends?

The template addresses this stage expressly: the licensee stops all new use within the period you set, and is given a window to sell off approved stock only, with no new production. Setting this in advance prevents months of argument after the relationship ends over goods that are already in the market.