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Non-Exclusive License Agreement

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NON-EXCLUSIVE LICENSE AGREEMENT

This Non-Exclusive License Agreement ("Agreement") is made as of by and between Licensor Name: , organized as , state of organization: , with principal place of business at ; and Licensee Name: , organized as , state of organization: , with principal place of business at . Licensor and Licensee are each a "Party" and together the "Parties."

RECITALS

WHEREAS, Licensor is the owner of certain intellectual property and materials described as and more particularly described in Exhibit A attached hereto (the "Licensed Materials");

WHEREAS, Licensee desires to obtain, and Licensor is willing to grant, a non-exclusive license to use the Licensed Materials on the terms and conditions set forth in this Agreement;

WHEREAS, the Parties intend by this Agreement to set forth the rights, limitations, compensation, and conditions applicable to the use of the Licensed Materials.

NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows:

1. GRANT OF LICENSE

1.1 Grant. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee a non-exclusive, non-transferable license to use the Licensed Materials solely for the purposes described in this Agreement and limited to the Field of Use: and Territory: .

1.2 Licensed Rights. The license granted includes the following rights (select applicable rights): .

1.3 Restrictions. Licensee shall not sublicense, assign, sell, distribute or otherwise transfer rights in the Licensed Materials except as expressly permitted by this Agreement. Licensee shall not use the Licensed Materials in any manner that infringes third-party rights, violates law, or is defamatory or obscene.

2. CONSIDERATION

2.1 Fees. In consideration for the license granted, Licensee shall pay Licensor a fee as follows: Initial fee: $; and Royalties: .

2.2 Payment Terms. Payments shall be due within days of the invoice date, payable in U.S. Dollars. All amounts payable hereunder are exclusive of taxes; Licensee shall be responsible for sales, use, value-added or similar taxes attributable to Licensee's payments.

3. TERM AND TERMINATION

3.1 Term. This Agreement commences on the Effective Date and continues for a period of years, unless earlier terminated in accordance with this Agreement.

3.2 Termination for Breach. Either Party may terminate this Agreement for the other Party's material breach if such breach remains uncured for days after written notice specifying the breach.

3.3 Effect of Termination. Upon termination, Licensee shall immediately cease all use of the Licensed Materials, return or destroy all copies as directed by Licensor, provide a final accounting and pay all amounts due through the date of termination. Sections that by their nature survive termination shall survive.

4. OWNERSHIP AND RESERVATION OF RIGHTS

Licensor retains all right, title and interest in and to the Licensed Materials and any modifications or derivatives thereof, including all intellectual property rights. No ownership interest is conveyed to Licensee except for the limited license expressly granted in this Agreement.

5. REPRESENTATIONS AND WARRANTIES

5.1 Mutual Representations. Each Party represents and warrants that it has the full corporate or other power and authority to enter into this Agreement and to perform its obligations hereunder.

5.2 Licensor Warranty. Licensor represents that, to Licensor's knowledge, the Licensed Materials do not infringe any third-party intellectual property rights, except as disclosed in writing: .

5.3 DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION, LICENSOR MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

6. INDEMNIFICATION

6.1 Licensee Indemnity. Licensee shall indemnify, defend and hold harmless Licensor and its officers, directors and agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Licensee's use of the Licensed Materials, breach of this Agreement, or infringement of third-party rights.

6.2 Procedure. The indemnified Party shall promptly notify the indemnifying Party of any claim and allow the indemnifying Party to control defense and settlement, provided that the indemnifying Party may not settle any claim that imposes obligations or liability on the indemnified Party without the indemnified Party's prior written consent.

7. LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR A BREACH OF CONFIDENTIALITY OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, AND EACH PARTY'S AGGREGATE LIABILITY SHALL BE LIMITED TO THE AMOUNTS PAID OR PAYABLE BY LICENSEE TO LICENSOR UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

8. CONFIDENTIALITY

8.1 Definition. "Confidential Information" means non-public information disclosed by one Party to the other that is designated confidential or that a reasonable person would understand to be confidential.

8.2 Obligations. Receiving Party shall use Confidential Information only for the purposes of performing under this Agreement and shall protect it with at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care.

9. AUDIT AND RECORDS

Licensee shall maintain accurate records relating to use of the Licensed Materials and payments due under this Agreement for a period of three (3) years. Licensor shall have the right, upon reasonable prior notice and during normal business hours, to audit such records not more than once per year to verify royalties and compliance.

10. ASSIGNMENT

Neither Party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, however, that either Party may assign this Agreement to an affiliate or in connection with a merger, sale of substantially all assets, or change of control, provided the assignee assumes all obligations hereunder.

11. NOTICES

Notices shall be in writing and delivered by hand, recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth above or to such other address as either Party may designate by notice in accordance with this Section. Notices shall be effective upon receipt.

12. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The Parties shall attempt in good faith to resolve disputes through negotiation, and if unresolved, through binding arbitration in accordance with the commercial arbitration rules selected by the Parties.

13. ENTIRE AGREEMENT; AMENDMENTS; SEVERABILITY; WAIVER

13.1 Entire Agreement. This Agreement, including all exhibits and schedules hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings.

13.2 Amendments. No amendment or modification of this Agreement shall be binding unless in writing and signed by authorized representatives of both Parties.

13.3 Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect and the Parties shall negotiate in good faith to replace the invalid provision with a valid provision achieving, to the extent possible, the Parties' original intent.

13.4 Waiver. No waiver of any breach of any provision shall constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provisions hereof.

14. MISCELLANEOUS

14.1 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

14.2 Force Majeure. Neither Party shall be liable for delays or failures in performance resulting from causes beyond its reasonable control, provided that the affected Party gives prompt notice and uses reasonable efforts to resume performance.

EXHIBIT A — DESCRIPTION OF LICENSED MATERIALS

Licensor Printed Name:

By:

Date:

Licensee Printed Name:

By:

Date:

Enter text✕

What a Non-Exclusive License Agreement Is

A Non-Exclusive License Agreement is a written contract where an owner of intellectual property grants rights to another party to use specified IP while retaining the right to license the same IP to others. It defines the scope of permitted uses, duration, territory, payment terms (if any), and any restrictions. The agreement transfers a license, not ownership, and can cover copyrights, trademarks, patents, or software. When executed electronically under ESIGN or UETA, a signed agreement can be enforceable so long as the e-signature meets legal validity criteria.

Why a Non-Exclusive License Agreement Is Useful

Non-exclusive licenses let licensors monetize or share IP broadly while preserving ownership; licensees gain defined, limited rights without long-term acquisition. The format supports flexible pricing, geographic segmentation, and multiple collaborators, and is commonly used where exclusivity is unnecessary or undesirable.

Why a Non-Exclusive License Agreement Is Useful

Typical Parties and When They Use This Agreement

Common users range from independent creators to corporations seeking repeatable licensing arrangements.

  • Independent Creators and Artists — Freelancers and content creators license works to multiple outlets while retaining rights for other deals.
  • Software and SaaS Providers — Grant limited usage rights to integrators or resellers without blocking other partnerships or marketplace distribution.
  • Publishers and Media Companies — License content regionally or by format while keeping the ability to license identical content elsewhere.

Parties choose non-exclusive terms when they want flexibility, multiple distribution channels, or incremental monetization without surrendering ownership.

Core Elements to Include in a Professional Agreement

A clear, well-drafted Non-Exclusive License Agreement minimizes disputes by precisely defining rights, limits, payment, and termination procedures for both parties.

Licensed Rights

Specify exactly which rights are granted (use, reproduce, distribute, perform), including allowed formats and derivative works.

Territory

Define the geographic scope—worldwide, specified countries, or limited regions—to avoid unintended licensing overlap.

Term and Renewal

State the start and end dates, renewal mechanics, and any automatic renewal or notice requirements.

Compensation

Detail royalties, flat fees, payment schedules, audits, and withholding responsibilities where applicable.

Restrictions

List prohibited uses, sublicensing limits, competitive restrictions, and quality control or branding requirements.

Termination and Remedies

Describe termination triggers, cure periods, post-termination rights, and dispute resolution procedures.

Step-by-step: Completing and Executing the Agreement

Follow a consistent order to draft, approve, sign, and retain the agreement for legal clarity and auditability.

  • 01
    Draft Terms: Assemble scope, term, payments, and restrictions in a single document version.
  • 02
    Internal Review: Have legal and finance confirm obligations, reporting, and tax implications.
  • 03
    Signatures: Collect signatures from authorized signatories; use electronic signing for timestamps and audit trails when permitted.
  • 04
    Recordkeeping: Provide executed copies to both parties and store securely with retention policy enforced.

Online Workflow Settings for Digital Execution

Configure your e-signature workflow to capture intent, identity, and an auditable trail before sending the document for signature.

Field Configuration
Signature Type Electronic signature (ESIGN/UETA compliant) with timestamp
Authentication Email link by default; add SMS OTP or ID verification for higher assurance
Audit Trail Enable full event log with IP, timestamps, and signer email
Retention Encrypted storage for at least the mandated retention period

Digital Signing, File Types, and Integrations

Choose a platform that supports common formats, integrations, and compliance controls required by your organization.

  • File Formats: PDF, Microsoft Word (DOCX), and common image formats supported
  • Integrations: Connectors for Salesforce, NetSuite, Google Workspace, Microsoft 365
  • Authentication: Email, SMS OTP, or advanced verification options available

Where to Send, File, and Store the Executed Agreement

A clear routing and storage plan ensures both parties have access and compliance needs are met.

  • Deliver to Licensee: Send executed copy to the licensee and their legal contact for records.
  • Licensor Records: Store a master executed copy in the licensor's contract repository.
  • Accounting: Send payment terms and executed agreement to finance for royalty tracking.
  • Legal Archive: Retain a signed, tamper-evident copy for audits and dispute resolution.

Key Dates and Timing to Track

Track effective dates, renewal windows, payment due dates, tax reporting triggers, and notice periods to avoid breaches or missed obligations.

Effective Date:

Date signatures take effect; enter MM/DD/YYYY format.

Renewal Notice:

Specify days required for non-renewal notice, e.g., 30 or 60 days.

Payment Deadlines:

List due dates and grace periods for fees and royalties.

Tax Reporting:

Royalty payments may require Form 1099 reporting by Jan 31.

Termination Notice:

Define written notice period for termination or breach cure.

eSignature Pricing Comparison (signNow first)

Basic vendor pricing and common feature availability to consider when selecting an eSignature provider for license agreements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by plan Varies by plan Limited trial Limited trial
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and Compliance Essentials

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II; ISO 27001
HIPAA: BAA available where required
Regulatory Standards: ESIGN and UETA compliant
Audit Trails: Tamper-evident event logs and timestamps
Accessibility: WCAG 2.0 Level AA support

Key Risks and Potential Consequences

Unclear Scope: May lead to infringement disputes
Payment Defaults: Monetary loss and collection costs
Improper Signatures: Enforceability challenges under ESIGN/UETA
Tax Exposure: Incorrect reporting or withholding liabilities
IP Misuse: Reputational harm and licensing claims
Termination Gaps: Continued unauthorized use after end date

Common Preparation Mistakes to Avoid

  • Using vague license language that fails to specify formats, platforms, or derivative rights, which creates ambiguity in enforcement.
  • Failing to address sublicensing and transfer rights; without explicit limits, secondary licensing may occur unintentionally.
  • Omitting payment and audit provisions, leaving licensors without a means to verify royalty calculations or require records.
  • Neglecting to confirm authorized signatories or the legal entity name, which can invalidate the agreement or delay enforcement.

Practical Tips for Drafting and Managing Licenses

Adopt consistent templates, document approvals, and automated tracking to reduce risk and administrative overhead.

Use Clear, Specific Language
Draft precise scope and restrictions to prevent ambiguity; avoid undefined terms and provide concrete examples of permitted and prohibited uses.
Document Payment and Audit Rights
Specify payment schedules, invoicing contacts, and audit access with notice periods so royalty calculations can be verified.
Establish Authorization Procedures
Require that signatories be authorized officers of the entity and capture titles and entity formation details to validate signature authority.
Maintain Secure Records
Store executed agreements in an encrypted repository, preserve the audit trail, and implement role-based access to maintain chain-of-custody integrity.

Frequently Asked Questions

Answers to common questions about enforceability, signing authority, notarization, amendment, and revocation for Non-Exclusive License Agreements.


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