What are licences?  
       Our licenses (terms include) 
       LICENSE TYPES   (negotiated, unilateral[warning])  Infringements   (leniency)

What are licenses, generally?

Generally, a LICENSE is a permission to use or do some thing that is illegal without a license. SNAP owns the intellectual property (IP) in the method shown here that makes it possible for simple and economical bags to be easy to open. SNAP does not intend to manufacture, SNAP intends instead to sell permissions (Licenses) to manufacturers and others.

"I can see how it works, so why do I need a license, why can't I just make this stuff?" or "How can you patent a bag, for goodness' sake?"
For many manufacturers, dealing with licenses is an unfamiliar thing, because much of the technology used is now out-of-patent. For example, thick-thin bags are subject of a patent to Leco Ltd of Montreal, who later sold it to DuPont; but by now the patent is expired and public domain, and people can legally use public-domain technology for free. This gives some people the idea that you can't patent bags -- but that's not so: there are hundreds of patents on bags. Patents give strong monopoly rights in exchange for disclosing a technology (the patent document "teaches" how to solve some problem in a new way) that will after a fixed time become public domain.
I.e. if you want to wait 20 years you may be able to use patented technology for free ... but by then the competition that got licenses will probably have gained a lot of market from you.

A License from SNAP for this IP will:

• entitle a Manufacturer to make Product* then sell directly to anyone, except in a territory assigned to someone else (SFT will let you know where the restrictions are) or
• entitle a Supplier (or Retailer, Marketer, Corporation, buying group, government, etc.) to commission products to be manufactured under their own License (that way, Licensed suppliers (etc.) are not restricted to using Licensed Manufacturers, and they can tender using the IP in their tender specifications) -- the un-Licensed Manufacturer would not be entitled to independently sell the product, only to make the required amount under the License held by the people ordering the product.

  (* "Product" here means product covered under this intellectual property)

SNAP!™ license information.

Our licenses in general • standard terms • select your license • infringement & policing • leniency

Licenses may be negotiated by manufacturers or by retailers (chains) who contract for the production of bags for their own use.

The licenses will be very similar but you should use the license FORM appropriate to your situation.

Our licenses: overview          top

The license terms include           top

• royalties at a rate per unit dollar of actual and true invoice value (arms' length dealing is assumed).
• royalty obligation is on a value basis.
      If you are a manufacturer, royalty is due on the basis of sales (but becomes due on all unsold inventory if the License is terminated).
      If you are a purchaser (as for example a retail chain), royalty is due on the basis purchase invoices and shipping documents if you are a purchaser.
• liability disclaimer: product liability remains with producer/licensee, and does not in any circumstance transfer to us.
• trademarks, tradenames, key information provided by us (trademark, contact info, patent information), at a minimum discreet but visible size, to be included on printed materials (the bags if printed, and the packaging if printed). This is important in retailing of, for example, trash bags; the outer package whether box or bag must acknowledge our trademark. Over time our trademark will become a valuable marketing tool for your product.
• No unauthorized trademark may be used in such a way as to usurp association with SNAP™ trademarks with the SNAP™ technology. This does not prevent licensees from using their own brands as manufacturing/retailing labels. For example and without limitation of the foregoing, your brand may be prominent on the package, but SNAP!™ and (e.g.) Zbag™ would also be (e.g.) present to show clearly the presence of this technology in your product.
• Licensee to not do anything to damage the goodwill associated with this technology, the Licensor, or the Licensor's trademarks.
• quality control: This technology expands the latitude of manufacturing parameters that can still give "first time every time" opening, but it is theoretically possible to have manufacturing conditions that 'glue' the bag panels together so they are almost a single sheet, therefore Licensee must adequately check production to ensure this guarantee is safe, and where appropriate may put storage and handling guidelines on packaging. "First time every time" must be a guarantee confidently offered by Licensee to its customers, not a challenge to beat the technology.
• our tradename/info to be specified on invoices and any sale documentation, and cartons pallets etc that are are inkjet-coded or hand-marked must indicate that the contents incorporate the SNAP! technology under license.
• declaration of quantities in each kind and size (value) of product; copies of invoices (if you so request, we will keep your customer names from your invoices confidential for 36 months unless they were referred to you by us); monthly statement and remittance; provision of samples.
• regular and accurate reporting of basic information, e.g. quantities made and sold/used, by type of bag.
• cooperation with auditing if requested.
• penalties for breaches: e.g. cost of auditing, loss of favourable royalty rates, loss of license in event of and according to seriousness of breach of terms.

License types...          top

Negotiated License Agreement (NLA)           top

Licensing can be for both Manufacturers(who actually make the bags, so they can sell to anybody), and for Major users (Chain stores, large corporate users, and Brand owners/marketers, who will contract out the making of bags -- so they can buy from anybody; this gives flexibility in sourcing). Contact us to APPLY for a full license.

Unilateral License (UL) -- warning           top

Manufacturers who proceed without negotiated license are implicitly accepting the terms of our unilateral unapproved license which has higher royalty rates (30% of the greater of: fair retail value or actual invoice) intended to compensate us for the trouble and expense of policing ULs. Terms are otherwise as for Negotiated License Agreement. Additional penalties may apply.

Producers who have made an honest mistake may contact us, and if they do so before we discover them, we may give them the benefit of the doubt (see leniency policy, below) and the opportunity to negotiate a retroactive license.

Infringements, policing           top

It is in licencees' interest to report infringements that could be giving competitors unfair advantage in your market area. Licensees are encouraged to report any probable or apparent infractions. Advise us in any form convenient to you.

Any printed bags, or packaging therefor, using SNAP!™ technology should contain our basic information as yours do. Offshore producers in un-regulated jurisdictions, or companies having bags made by them, have no 'shelter' or 'advantage' in regard to intellectual property: they do have the same obligation to operate under license. You (as a Licensee) do not have to tolerate their undercutting you if they are unlicensed.

Manufacture of product including SNAP!™ technology in quantity greater than 10,000 bags of any size more than 3 days in advance of license approval will be assumed to be a "unilateral license" which carries higher royalty rates.

Leniency policy           top

Producers or bulk purchasers who approach us and advise us of their inadvertent infringement before we detect them will be treated as leniently as possible while remaining fair to conforming licensees in the same market area. Our preferred manner of dealing with infractions is to convert them to retroactive licenses; royalties in retroactive licenses will not be as low as in negotiated approved licenses, but will be lower than in ULs.