{"id":195984,"date":"2026-02-16T09:40:53","date_gmt":"2026-02-16T09:40:53","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=195984"},"modified":"2026-02-16T11:25:28","modified_gmt":"2026-02-16T11:25:28","slug":"protecting-your-intellectual-property","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/","title":{"rendered":"Manufacturing Agreements: Protecting Your Product IP"},"content":{"rendered":"\n<p>Manufacturing projects can often give rise to high costs, expectations and risks. When you outsource production to an external manufacturer, you will often have to share:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>valuable designs;&nbsp;<\/li>\n\n\n\n<li>technical details; and&nbsp;<\/li>\n\n\n\n<li>business knowledge<\/li>\n<\/ul>\n\n\n\n<p>This is why it is highly important to make sure that your intellectual property (IP) is protected from any potential misuse or harm in manufacturing relationships.&nbsp;<\/p>\n\n\n\n<p>This article explores how a robust manufacturing agreement helps protect your business and your IP when you are working with a third-party manufacturer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Role and Importance of a Manufacturing Agreement<\/h2>\n\n\n\n<p>Manufacturing often means:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>high costs;&nbsp;<\/li>\n\n\n\n<li>specific requirements; and&nbsp;<\/li>\n\n\n\n<li>tight delivery deadlines.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Many businesses depend on their manufactured products for their business income and operations. Problems such as poor quality, late deliveries, or misuse of IP can seriously damage your business and pose various risks.<\/p>\n\n\n\n<p>A manufacturing agreement sets out each party&#8217;s responsibilities and helps manage common risks. It sets:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>clear expectations;&nbsp;<\/li>\n\n\n\n<li>protects your rights; and&nbsp;<\/li>\n\n\n\n<li>can help serve as evidence in the event of a dispute.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What a Manufacturing Agreement Covers<\/h2>\n\n\n\n<p>A manufacturing agreement explains how the manufacturer will make and deliver products to you. The agreement should correspond with how you will actually work together in practice and cover:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how orders are placed;&nbsp;<\/li>\n\n\n\n<li>how production is planned;&nbsp;<\/li>\n\n\n\n<li>any product quality issues are handled;<\/li>\n\n\n\n<li>agreed delivery requirements;&nbsp;<\/li>\n\n\n\n<li>inspection rights;&nbsp;<\/li>\n\n\n\n<li>how products are accepted; and<\/li>\n\n\n\n<li>commercial terms.<\/li>\n<\/ul>\n\n\n\n<p>A thorough agreement will also often include provisions, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>warranties;<\/li>\n\n\n\n<li>limits on liability;<\/li>\n\n\n\n<li>indemnities;<\/li>\n\n\n\n<li>insurance;<\/li>\n\n\n\n<li>how the contract can end;<\/li>\n\n\n\n<li>following rules regulations;<\/li>\n\n\n\n<li>how disputes are handled; and<\/li>\n\n\n\n<li>which laws apply.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>These key provisions can help both sides work together smoothly with a strong legal framework in place.<\/p>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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When you share this property with a manufacturer, if the agreement does not clearly define IP rights, problems and disputes may arise.&nbsp;<\/p>\n\n\n\n<p>For example, manufacturers could:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reuse designs;&nbsp;<\/li>\n\n\n\n<li>claim rights to improvements; or&nbsp;<\/li>\n\n\n\n<li>use your own know-how in other projects.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Addressing IP protection in the agreement can give you greater certainty and avoid costly disputes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Defining IP Ownership<\/h2>\n\n\n\n<p>A manufacturing agreement should make it clear who owns the IP. If you give the manufacturer access to your IP, the contract should state that all your IP remains yours.<\/p>\n\n\n\n<p>The agreement should also acknowledge any pre-existing IP owned by the manufacturer, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>production methods;&nbsp;<\/li>\n\n\n\n<li>manufacturing processes; or&nbsp;<\/li>\n\n\n\n<li>independently developed tooling.&nbsp;<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Clear definitions can help reduce the risk of ownership disputes during or after the relationship. The agreement should also cover any IP created while you work together. Without this, you might end up arguing over who owns new ideas or improvements.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Rules on Customer IP Use for Manufacturing<\/h2>\n\n\n\n<p>If you <a href=\"https:\/\/legalvision.co.uk\/intellectual-property\/intellectual-property-ip-strategy\/\">own the IP<\/a>, the manufacturer must obtain permission to use it. The agreement should grant a limited licence that allows the manufacturer to fulfil its services and obligations. This licence is typically non-exclusive and royalty-free. It should permit the use of the IP only to manufacture products under the agreement and solely for you as the customer.<\/p>\n\n\n\n<p>The licence should not allow use for:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>other customers;&nbsp;<\/li>\n\n\n\n<li>competing products; or&nbsp;<\/li>\n\n\n\n<li>internal development.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The license should also end when the agreement terminates, which prevents continued use of the IP after the contract ends.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use of Trade Marks<\/h2>\n\n\n\n<p>Trade marks require specific attention, and the manufacturing agreement should outline rules for how and when the manufacturer may use your trade mark on products and packaging.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>The manufacturer should only use the trade marks you approve and should not claim ownership or do anything that could harm the trade mark\u2019s reputation or validity.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Subcontracting and IP Risk<\/h2>\n\n\n\n<p>Manufacturers may use subcontractors, which can make your IP more vulnerable to misuse or harm. The agreement should disclose if the manufacturer is allowed to use subcontractors. If they are, only approved subcontractors should get access to your IP, and they must follow the same confidentiality rules. The manufacturer should be held strictly responsible for what the subcontractor does and any omissions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Improvements and Changes<\/h2>\n\n\n\n<p>Working with a manufacturer can lead to changes or improvements in your products or processes.<\/p>\n\n\n\n<p>The agreement should clearly define what constitutes an improvement and require both parties to disclose any new developments. It should also set out who owns those improvements and whether any licences are required to continue performing the agreement.<\/p>\n\n\n\n<p>Clear rules on ownership and licensing help prevent IP-related disputes and allow the relationship to continue smoothly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">IP Infringement Risk<\/h2>\n\n\n\n<p>Manufacturing agreements often address third-party IP risks through indemnities. If the manufacturer provides its own technology or processes under the agreement, you may seek <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/intellectual-property-indemnity-protect-business\/\">a specific IP indemnity<\/a> from the manufacturer to protect your business from risk. This may require some negotiation with the manufacturer.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Confidentiality and IP Protection<\/h2>\n\n\n\n<p>Confidentiality rules can help to protect your IP. Manufacturing agreements usually require both sides to keep each other\u2019s confidential information safe during the contract and for a set time after it ends.<\/p>\n\n\n\n<p>These obligations can be used to restrict both the disclosure and use of confidential information, including any IP.&nbsp;<\/p>\n\n\n\n<p>These are simplified and high-level examples of common provisions, but legal advice can help you determine the correct clauses to include to protect your business IP from risk.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taking Legal Advice on Manufacturing Agreements<\/h2>\n\n\n\n<p>The examples outlined in this article are high-level and simplified; legal advice can help you determine the correct clauses to protect your business IP from risk.&nbsp;<\/p>\n\n\n\n<p>Manufacturing agreements can be complex and high-risk, and manufacturers often propose standard terms that may not align with your legal and commercial priorities as a customer.<\/p>\n\n\n\n<p>Legal advice from a commercial solicitor can help your business:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>identify risks,&nbsp;<\/li>\n\n\n\n<li>clarify IP ownership; and&nbsp;<\/li>\n\n\n\n<li>negotiate appropriate protections.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If no agreement is put forward, then a commercial lawyer can draft one tailored to your needs. Addressing these matters in a robust agreement can help prevent costly and worrying disputes and protect your IP and brand.&nbsp;<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2025\/12\/15035149\/LegalVision-UK-Legal-Essentials-for-UK-Manufacturing-and-Logistics-Businesses.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Legal Essentials for UK Manufacturing and Logistics Businesses<\/div>\n            <div class=\"body-text\">\n                <p>Starting or managing a franchise? Download this free guide for essential legal insights on business structure, intellectual property, compliance, contracts, and managing disputes.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/legal-essentials-for-uk-manufacturing-and-logistics-businesses.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Manufacturing agreements are key to your protection when you outsource product production. A clear manufacturing agreement can help manage risk and, in particular, <a href=\"https:\/\/legalvision.co.uk\/startups\/startup-protect-intellectual-property\/\">protect your IP <\/a>through robust contractual rules.&nbsp;Taking time to put in place protective legal terms can support a smooth manufacturing relationship and reduce the likelihood of disputes, especially around the use of your valuable IP.&nbsp;<\/p>\n\n\n\n<p>If you need help in drafting your commercial contracts, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced\u00a0<a href=\"https:\/\/legalvision.co.uk\/contract-lawyers-lp\">contract lawyers<\/a>\u00a0help businesses across industries manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee.\u00a0To learn more about LegalVision\u2019s legal membership, call <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a>\u00a0or\u00a0<a href=\"https:\/\/legalvision.co.uk\/membership\/\" target=\"_blank\" rel=\"noreferrer noopener\">visit our membership page<\/a>.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1771234383596\"><strong class=\"schema-faq-question\">Why do you need a manufacturing agreement?<\/strong> <p class=\"schema-faq-answer\">A manufacturing agreement sets clear rules for working with a manufacturer. For instance, it can help ensure products meet specifications, are delivered on time, that you have remedies if needed and that your IP is protected.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1771234393050\"><strong class=\"schema-faq-question\">How can a lawyer help with a manufacturing agreement?<\/strong> <p class=\"schema-faq-answer\">A commercial lawyer can review or draft the agreement, identify legal and commercial risks, and negotiate terms to protect your interests in the commercial relationship.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/195984\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Manufacturing Agreements: Protecting Your Product IP\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Manufacturing projects can often give rise to high costs, expectations and risks. When you outsource production to an external manufacturer, you will often have to share:&nbsp; This is why it is highly important to make sure that your intellectual property (IP) is protected from any potential misuse or harm in manufacturing relationships.&nbsp; This article explores<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/\">Continue reading <span class=\"sr-only\">&#8220;Manufacturing Agreements: Protecting Your Product IP&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13436,"featured_media":191762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,21,186,2579],"class_list":["post-195984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-medium-business","tag-intellectual-property","tag-manufacturing-agreements"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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manufacturer.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#faq-question-1771234383596"},{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#faq-question-1771234393050"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/12\/06042527\/startup-593341_1920.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/12\/06042527\/startup-593341_1920.jpg","width":1920,"height":1280,"caption":"Manufacturing Agreements: Protecting Your Product IP"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Commercial Contract Articles","item":"https:\/\/legalvision.co.uk\/category\/commercial-contracts\/"},{"@type":"ListItem","position":3,"name":"Manufacturing Agreements: Protecting Your Product IP"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to 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She is an experienced legal content writer who enjoys writing legal guides, blogs, and know-how tools for businesses. She studied History at University College London and then developed a passion for law, which inspired her to become a qualified lawyer. Sej enjoys drawing on her legal knowledge and practical commercial acumen to draft legal content that is commercially focused and easy for businesses to understand. She is passionate about breaking down complex legal concepts into clear and valuable insights which businesses can digest and learn from. Sej has a strong interest in fast-developing areas such as data privacy law and AI and has drafted articles which have been published in leading UK legal website publications, including The Lawyer and The Law Society Gazette websites.","sameAs":["https:\/\/www.linkedin.com\/in\/sejlamba\/"],"url":"https:\/\/legalvision.co.uk\/author\/sehajlamba\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#faq-question-1771234383596","name":"Why do you need a manufacturing agreement?","acceptedAnswer":{"@type":"Answer","text":"A manufacturing agreement sets clear rules for working with a manufacturer. For instance, it can help ensure products meet specifications, are delivered on time, that you have remedies if needed and that your IP is protected.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/protecting-your-intellectual-property\/#faq-question-1771234393050","name":"How can a lawyer help with a manufacturing agreement?","acceptedAnswer":{"@type":"Answer","text":"A commercial lawyer can review or draft the agreement, identify legal and commercial risks, and negotiate terms to protect your interests in the commercial relationship.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/195984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13436"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=195984"}],"version-history":[{"count":3,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/195984\/revisions"}],"predecessor-version":[{"id":195988,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/195984\/revisions\/195988"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/191762"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=195984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=195984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=195984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}