LICENCE TO USE A PATENT

This agreement is made on this 20th day of January 2000 between Mr. AB residing at………(hereinafter referred to as the licensor which term shall include his successors and assigns) of the one part and CD Co. Ltd. a company registered under the Companies Act 1956 and carrying on business at………..(hereinafter referred to as the licensee which term shall include its successors and permitted assigns) of the other part.
Whereas the licensor has invented a specialised process of manufacturing Pocket Air-conditioners and on his application sanction has been given for Patent to be registered as 'PAC under the Patents Act 1970.
And whereas the licensor has been granted the said Patent for the process of manufacture of the said article and sale thereof under the Brand name 'PAC
And whereas the licensee has approached the licensor for exploitation and marketing of the said Patent under a Licence from the licensor.
And whereas the licensor has agreed to permit the licensee to use the said Patent.
NOW this AGREEMENT WITNESSETH and the parties hereby agree as follows;
1. In consideration of the licensee agreeing to pay a licence fee of Rs. 2 lakhs per year the LICENSOR hereby grants the licensee permission or a licence to use the specialised manufacturing process or manufacturing the Pocket Air-conditioners to market and sell such air-conditioners under the
Patent name 'PAC
2. The licence hereby granted will be valid for 10 years after which the Licence would be renewed or not would be decided by mutual agreement.
3. In addition to the said licence fee the licensee shall pay to the LICENSOR a Royalty of Rs. 100 for each PAC sold. The licensee shall maintain and furnish regular accounts of the manufacture and sale of the said Patented article. Such accounts would be open to inspection through representative
of the licensor.
4. The licensee shall not assign the licence or allow anybody else to use the said Patent.
5. The licensee shall take immediate action for any infringement of the said Patent making the licensor a party to the such proceedings.
6. The licensee shall keep the licensor fully indemnified against and harmless from all proceedings, claims, costs and expenses in relation to the manufacture and sale or use of the said Patented article or in relation thereto.
7. The licensee has made enquiries and inspected the relevant documents and has satisfied itself about the right, title or interest of the LICENSOR in the said Patent.
8. The licensor does not give any warranty or undertaking about its right, title or interest in the said Patent or about any litigation in relation thereto.
9. The licensee shall submit accounts and make payment of the Royalties, the first of such statement of accounts and payment of Royalty would be by end of April 2000 and thereafter by the end of each third month.
In witness whereof the parties hereto have executed these presents on the day, month and year first above-written.
Signed and delivered by the said Mr. AB, the licensor in the presence of:
1		Signature
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Signed, sealed and delivered
 by Mr. XY pursuant to a Board
Resolution dated………of
CD Co. Ltd. the licensee in the presence of:
1                                                   Signature
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