sublicense-agreement

name	sublicense-agreement
title	Sublicense Agreement
description	Drafts Sublicense Agreements for IP licensing transactions, ensuring compliance with the underlying Master License Agreement. Covers grant of rights, territory, field-of-use, term, royalty structures on Net Sales, flow-down obligations, and termination tied to master license. Use when a licensee (Sublicensor) grants derivative rights to a third party (Sublicensee), for IP sublicensing or derivative license agreements.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/sublicense-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	general
practice	ip
language	en

Sublicense Agreement

Drafts a sublicense agreement conveying derivative IP rights from an existing licensee to a third party while maintaining strict compliance with the Master License Agreement.

Prerequisites

Gather before drafting:

1. Master License Agreement — executed copy with: original licensor, execution date, licensed IP, scope of rights, territorial/field-of-use restrictions, royalty obligations, sublicensing provisions
2. Sublicensing authorization — confirmation Master License permits sublicensing; if consent required, evidence of licensor approval
3. Party details — legal names, jurisdictions, principal places of business, authorized signatories for Sublicensor and Sublicensee
4. Business terms — exclusive vs. non-exclusive, territory, field-of-use, term, royalty rate, payment structure, minimums or milestones

Agreement Sections

1. Preamble & Recitals

Recital	Content
Master License	Original licensor, execution date, licensed IP, cite sublicensing provision
Sublicensing Right	Affirm sublicensing rights with Master License section reference
Purpose	Sublicensee's intended business use

2. Definitions

Define at minimum:

• Licensed IP — specific rights being sublicensed
• Net Sales — gross revenue minus: (a) returns/allowances, (b) trade/quantity discounts, (c) sales/use/VAT taxes, (d) freight/insurance, (e) customs duties
• Territory — geographic scope (must not exceed Master License)
• Field of Use — permitted applications/industries/markets
• Royalty Period — calendar quarter unless otherwise specified

3. Grant of Rights

• Exclusive or non-exclusive designation
• Specific rights granted (make, use, sell, offer for sale, import, distribute)
• "Subject to all terms and conditions of the Master License"
• "Sublicensee receives no greater rights than Sublicensor holds under the Master License"
• Territory and field-of-use limitations stated explicitly