Derivative Work Licence Agreement

Derivative Work Licence Agreement Template for England and Wales

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Key Requirements PROMPT example:

"I need a Derivative Work Licence Agreement to allow a gaming studio to create mobile game versions of my existing board games, with a 10% royalty structure and exclusive rights in the European market starting from March 2025."

Document background

A Derivative Work Licence Agreement is essential when one party wishes to legally modify or adapt another's copyrighted work. Used extensively in creative industries under English and Welsh law, this agreement protects both the original creator's rights and enables innovation through authorized derivatives. It specifies permitted modifications, commercial terms, and quality standards, ensuring compliance with UK copyright legislation while providing clear frameworks for exploitation of derivative works. The agreement is particularly crucial for managing intellectual property rights in collaborative creative projects.

Suggested Sections

1. Parties: Details of the licensor and licensee

2. Background: Context of the agreement and ownership of original work

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Scope and nature of the derivative work rights being licensed

5. Licence Restrictions: Limitations on use of the original work

6. Intellectual Property Rights: Ownership and protection of rights in both original and derivative works

7. Payment Terms: Fees, royalties and payment arrangements

8. Term and Termination: Duration and termination provisions

Optional Sections

1. Quality Control: Used when licensor wants to maintain quality standards in derivative works - recommended for brand-sensitive or reputation-dependent works

2. Distribution Rights: Terms for distribution of derivative works - include when licensee will be distributing the derivative works

3. Territory Restrictions: Geographical limitations on derivative work usage - include for territory-specific licensing

4. Moral Rights: Protection of author's moral rights - include when original author wants to maintain specific controls

Suggested Schedules

1. Schedule 1 - Original Work: Detailed description of the original work being licensed

2. Schedule 2 - Permitted Derivative Works: Specification of allowed derivative works and modifications

3. Schedule 3 - Payment Schedule: Detailed breakdown of fees, royalties and payment terms

4. Schedule 4 - Quality Standards: Quality requirements for derivative works if applicable

5. Appendix A - Approved Territories: List of territories where derivative works can be created/distributed

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Entertainment
Publishing
Software
Gaming
Art and Design

Relevant Teams

Legal
Creative
Intellectual Property
Business Development
Marketing

Relevant Roles

IP Rights Manager
Content Creator
Legal Counsel
Creative Director
Licensing Manager

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Derivative Work Licence Agreement Template for England and Wales

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