Common use of Materials Ownership and License Clause in Contracts

Materials Ownership and License. An Attachment or Transaction Document will specify Materials to be delivered to Customer and identify them as “Type I Materials,” “Type II Materials,” or otherwise as both parties agree. If not specified, Materials will be considered Type II Materials. Customer will own the copyright in Materials created as part of a Service that are identified as “Type I Materials.” Customer grants IBM an irrevocable, nonexclusive, worldwide, paid-up license to use, execute, reproduce, display, perform, sublicense, distribute, and prepare derivative works based on, Type I Materials. IBM or its suppliers will own the copyright in Materials created as part of a Services transaction that are identified as Type II Materials. IBM grants Customer an irrevocable, nonexclusive, worldwide, paid-up license to use, execute, reproduce, display, perform, and distribute (within Customer’s Enterprise only) copies of Type II Materials. For the purposes of this paragraph only, 'Enterprise' shall mean any legal entity (such as a corporation) and the subsidiaries it owns worldwide by more than 50 percent. IBM or its suppliers retains ownership of the copyright in any of IBM’s or its suppliers’ works that pre-exist or were developed outside of this Agreement and any modifications or enhancements of such works that may be made under this Agreement. To the extent they are embedded in any Materials, such works are licensed in accordance with their separate licenses provided to Customer, if any, or otherwise as Type II Materials. Each of us agrees to reproduce the copyright notice and any other legend of ownership on any copies made under the licenses granted in this section.

Materials Ownership and License. 7.1. An Attachment or Transaction Document will specify Materials to be delivered to Customer and the Customer. IBM will identify them as being “Type I Materials,” “Type II Materials,” or otherwise as both parties agree. If not specified, Materials will be considered Type II Materials. 7.2. Customer will own the copyright in Materials created as part of a Service that are identified as “Type I Materials.” Customer Cus- tomer grants IBM an irrevocable, nonexclusive, worldwide, paid-up license for the term of validity of the exclusive right to use, execute, reproduce, display, perform, sublicense, distribute, and prepare derivative works based on, Type I Materials. 7.3. IBM or its suppliers will own the copyright in Materials created as part of a Services transaction that are identified as Type II Materials. IBM grants Customer an irrevocable, nonexclusive, worldwide, paid-up license for the term of va- lidity of the exclusive right to use, execute, reproduce, display, perform, and distribute (within Customer’s Enterprise only) copies of Type II Materials. For the purposes of this paragraph only, 'Enterprise' shall mean any legal entity (such as a corporation) and the subsidiaries it owns worldwide by more than 50 percent. 7.4. IBM or its suppliers retains ownership of the copyright in any of IBM’s or its suppliers’ works that pre-exist or were developed outside of this Agreement and any modifications or enhancements of such works that may be made under this Agreement. To the extent they are embedded in any Materials, such works are licensed in accordance with their separate licenses provided to Customer, if any, or otherwise as Type II Materials. 7.5. Each of us the Parties agrees to reproduce the copyright notice and any other legend of ownership on any copies made under un- der the licenses granted in this section.