Equipment License Agreement Template for India

The Equipment License Agreement serves as a critical legal instrument in India for organizations seeking to license equipment without transferring ownership. This document is essential when a company wants to grant another party the right to use specific equipment under defined terms and conditions, while retaining ownership and controlling usage rights. It incorporates key requirements under Indian law, including compliance with the Indian Contract Act, 1872, the Sale of Goods Act, 1930, and relevant industry-specific regulations. The agreement is particularly valuable in scenarios involving high-value equipment, specialized machinery, or technology-driven apparatus where usage rights need to be clearly defined and protected. It addresses essential aspects such as licensing terms, maintenance responsibilities, liability provisions, technical specifications, and regulatory compliance, while ensuring alignment with Indian legal and regulatory frameworks.

1. Parties: Identifies and provides details of the licensor and licensee, including their registered addresses and company registration numbers

2. Background: Explains the context of the agreement, including the nature of the equipment and the purpose of the licensing arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and precision

4. Grant of License: Specifies the scope, nature, and territory of the license granted for the equipment

5. License Fee and Payment Terms: Details the licensing fees, payment schedule, and payment methods

6. Term and Termination: Specifies the duration of the license and circumstances under which it can be terminated

7. Equipment Specifications: Describes the licensed equipment's technical specifications and operational requirements

8. Delivery and Installation: Outlines the terms for equipment delivery, installation, and commissioning

9. Maintenance and Support: Details the maintenance obligations and support services for the equipment

10. Training and Documentation: Specifies training requirements and documentation to be provided

11. Warranties and Representations: States the warranties provided for the equipment and representations made by both parties

12. Liability and Indemnification: Defines the extent of liability and indemnification obligations of both parties

13. Insurance: Specifies insurance requirements for the equipment and operations

14. Confidentiality: Protects confidential information shared during the license period

15. Governing Law and Jurisdiction: Specifies that Indian law governs the agreement and establishes jurisdiction for dispute resolution

16. Notice: Provides the mechanism and addresses for formal communications between parties

17. General Provisions: Includes standard boilerplate clauses such as force majeure, severability, and entire agreement