Common use of Product Production Approval Based on a Licensing Agreement Clause in Contracts

Product Production Approval Based on a Licensing Agreement. When the FAA or EASA/AA grants a production approval for a product (aircraft, engine or propeller) in their respective territory based on design data obtained through a licensing agreement with a type design holder in the other’s jurisdiction (i.e., licensing the rights to use the design data), FAA or EASA/AA shall have procedures to ensure that all changes to be introduced into the design by the licensee are approved by the FAA or EASA, as applicable. The production approval holder shall be required to submit these design changes to the type design holder who shall obtain approval from its CA using normal procedures. These production approvals based on a licensing agreement shall be addressed on a case-by-case basis via a working arrangement under Section VII of these Implementation Procedures.