Contract Industrial Property is a common clause in international trade contracts, referring to the agreement between parties regarding the ownership, licensing, infringement liability, and protection obligations of industrial property (including patents, trademarks, designs, utility models, etc.) related to contract products, technologies, or services. It is commonly used in technology transfer, licensed production, OEM/ODM cooperation, and complete equipment export contracts. Precautions: It is necessary to clarify the scope of industrial property (such as patent numbers, trademark registration locations), licensing methods (exclusive/non-exclusive), territorial restrictions, validity period, and ownership of subsequent improvements; if third-party infringement is involved, it should be agreed which party bears the responsibility for responding to lawsuits and compensation. Unlike 'Intellectual Property', industrial property focuses more on rights requiring administrative registration such as patents and trademarks, while intellectual property also includes copyrights, trade secrets, etc. Compared with 'Contract Intellectual Property', industrial property clauses focus more on rights related to technology implementation and product manufacturing. Foreign trade practitioners should conduct rights searches before signing contracts to avoid infringement risks and agree on dispute resolution methods.
📝 Examples
1. In the technology licensing contract, the parties agreed that the licensor grants the licensee a non-exclusive right to use its Contract Industrial Property (including two invention patents and one trademark) within China to manufacture and sell products, with a license fee of 3% of net sales. (Note: Clarify the scope of license, territory, types of rights, and royalty method)
2. If any third party claims that the Contract Industrial Property infringes its rights, the licensee shall immediately notify the licensor, and the licensor shall be responsible for handling the claim and bearing all costs arising therefrom. (Note: Agree on the attribution of infringement liability to protect the licensee's interests)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner