Product Sponsorship Agreement Template for United States

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Key Requirements PROMPT example:

Product Sponsorship Agreement

"I need a Product Sponsorship Agreement for my tech startup's new AI software, where we'll be partnering with a major gaming influencer for a six-month campaign starting January 2025, with specific requirements around social media content and performance metrics."

Document background
Product Sponsorship Agreements have become increasingly important in today's marketing landscape, particularly with the rise of digital promotion and influencer marketing. This contract type is essential when companies seek to leverage external parties to promote their products while maintaining brand control and ensuring regulatory compliance. A Product Sponsorship Agreement typically covers sponsorship fees, promotional obligations, content approval processes, and performance metrics. In the United States, these agreements must comply with FTC guidelines on endorsements, state-specific contract laws, and industry regulations.
Suggested Sections

1. Parties: Identifies and defines the sponsor and sponsored party with full legal names and addresses

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Sponsorship Rights and Benefits: Details the specific rights granted to the sponsor and benefits provided

5. Term and Termination: Specifies duration of agreement and termination conditions

6. Payment Terms: Outlines sponsorship fees, payment schedule, and related terms

7. Intellectual Property Rights: Addresses usage rights for logos, trademarks, and other IP

8. Representations and Warranties: Standard warranties from both parties regarding their capacity and authority

Optional Sections

1. Exclusivity Provisions: Used when sponsor requires category exclusivity or non-compete provisions

2. Content Approval Process: Details process for approving sponsored content and marketing materials

3. Performance Metrics: Defines KPIs and measurement criteria for sponsorship effectiveness

4. Force Majeure: Addresses unforeseen circumstances and their impact on the sponsorship

Suggested Schedules

1. Schedule A - Sponsorship Benefits: Detailed list of all sponsorship benefits and deliverables

2. Schedule B - Brand Guidelines: Sponsor's brand usage guidelines and requirements

3. Schedule C - Payment Schedule: Detailed payment terms and installment schedule

4. Schedule D - Performance Metrics: Detailed KPIs and measurement methodology

5. Appendix 1 - Approved Promotional Materials: Pre-approved marketing materials and content templates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

FTC Regulations: Federal Trade Commission regulations including Guidelines on Endorsements and Testimonials, Truth in Advertising regulations, social media disclosure requirements, and 'clear and conspicuous' disclosure requirements for sponsored content

Intellectual Property Laws: Including Trademark Law (Lanham Act), Copyright Law, Patent Law, and Right of Publicity laws to protect both parties' intellectual assets and creative works

State-Specific Laws: Various state-level regulations including contract laws, consumer protection laws, and state-specific advertising regulations that may affect the agreement

Digital Marketing Laws: CAN-SPAM Act for email marketing compliance and Children's Online Privacy Protection Act (COPPA) for agreements involving minors

Industry-Specific Regulations: Specialized regulations such as FDA regulations for food/medical products, TTB regulations for alcohol products, and FCC regulations for broadcast media

Competition Laws: Antitrust regulations including Sherman Antitrust Act, Clayton Act, and Federal Trade Commission Act to ensure compliance with fair competition practices

Tax Laws: Internal Revenue Code provisions on sponsorship income and relevant state tax regulations affecting sponsorship payments and benefits

Privacy Laws: State and federal privacy regulations, including GDPR compliance requirements for international reach, governing data protection and privacy rights

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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