Merchandising Agreement (Drafting)

A Merchandising Agreement may cover a character, mascot or logo that is easily recognized by the public. It could also be used for a piece of software or other patented technology such as a manufacturing process. Such agreements may be exclusive or nonexclusive. With a Merchandising Agreement, you can lay out both parties' roles and responsibilities, including who maintains the rights to the item that you are licensing. Merchandising Agreement document if you own licensing rights to a product and would like to grant license for another company to use to produce and you are a Retailer or Manufacturer and you would like the license to produce or manufacture a product for distribute and sale.

You can define the geographical areas where the product will be sold, length of the term, and financial details such as royalties or payments per unit sold. You may also want to include quality control parameters to ensure that the new products are up to snuff. Since there's always the potential for a dispute, you'll likely want to work out a method for conflict resolution in advance. The agreement also addresses the obligations of the licensee. In addition to payment terms, these can include responsibility for enforcing infringement or piracy violations or a guarantee on the part of the licensee to make a good faith effort to sell the licensed products.If you're in the lucky position of selling the rights to your creation, or you have a great idea for new licensed memorabilia or profitable use for a patented technology, a Merchandising Agreement helps you iron out the details.


Features of Merchandisng Agreement:


Manufacturing license agreements are actually similar to most licensing agreement that transfer intellectual property rights between parties. However, there are some issues that should definitely be addressed in this type of agreement. Among these are:


1.Roles and responsibilities: First of all, it is important to include the obligations of each party, including which party retains the rights to the property throughout the term of the agreement.


2.Geographic areas of interest: It is often the desire of the licensor to restrict the rights of the licensee to sell products based on the licensed property in certain geographic areas based on existing licenses or existing non-compete agreement.


3.Length of term of the license: Most licenses are for a limited time or have renewal clauses that may be triggered by the licensee realizing agreed upon sales goals.


4.Financial details: These could include the amount due the licensor at the time the contract is signed and calculations to determine the amount of royalty payments.


5.Quality control standards: This is particularly important if the licensor has established a brand that is held in high esteem and it is important that any product created by the licensee maintain the standard of excellence.


6.Conflict resolution language: In a perfect world, things always go smoothly. In real life, however, issues of dispute may arise between parties to a merchandising license agreement. As in the case when entering into any legal agreement, it’s always wise for both parties to consult an experienced professional to protect their rights in the event of a conflict.

Documents Required

Passport Photo

Passport photo of all parties.

PAN Card

PAN card of all parties.

Aadhar Card

Aadhar card of all parties.

Utility Bill

Utility bill of Electricity or Telephone.

Address Proof

Valid Address Proof of all the parties.


Valid Driving Licence of all the parties.

Terms and Conditions

Terms and Conditions between the parties.

Other Documents

Other documents will be intimated through e-mail.