The Commercial License Agreement is a crucial legal instrument used in Indonesian business transactions where one party wishes to grant another the right to use its intellectual property, technology, or proprietary assets while maintaining ownership rights. This document is essential when companies want to monetize their IP assets, expand their market presence through licensed partners, or establish technology transfer arrangements in Indonesia. The agreement must comply with Indonesian legal requirements, including the Civil Code (Kitab Undang-undang Hukum Perdata), Law No. 28 of 2014 on Copyright, and other relevant IP and commercial regulations. It's particularly important for foreign companies entering the Indonesian market or local companies acquiring rights to use international technologies or IP assets.
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1. Parties: Identification of licensor and licensee with complete legal details as required under Indonesian law
2. Background: Context of the agreement and brief description of the licensed property/technology
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope, nature, and territory of the license (exclusive/non-exclusive, transferable/non-transferable)
5. License Fees and Payment Terms: Financial terms, payment schedule, currency, and payment methods
6. Licensor's Obligations: Responsibilities of the licensor including delivery, support, and maintenance
7. Licensee's Obligations: Responsibilities and restrictions on the licensee's use of licensed material
8. Intellectual Property Rights: Ownership and protection of IP rights, including improvements and modifications
9. Confidentiality: Protection and handling of confidential information exchanged
10. Term and Termination: Duration of agreement and circumstances for termination
11. Consequences of Termination: Actions required upon termination and surviving obligations
12. Warranties and Representations: Warranties given by each party regarding authority, IP rights, and performance
13. Liability and Indemnification: Limitation of liability and indemnification obligations
14. Force Majeure: Provisions for unforeseen circumstances preventing performance
15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Quality Control: For licenses involving branded products or services requiring quality standards
2. Source Code Escrow: For software licenses where source code access may be required
3. Training and Support: When ongoing technical support or training is part of the license
4. Export Control: For licenses involving international transfer of technology
5. Data Protection: When personal data processing is involved in the licensed activities
6. Competition Law Compliance: For licenses that may impact market competition
7. Insurance: When specific insurance coverage is required for licensed activities
8. Change Control: For licenses requiring formal processes for modifications
9. Audit Rights: When licensor requires right to audit licensee's use or payments
1. Schedule 1 - Licensed Property: Detailed description of licensed intellectual property, technology, or materials
2. Schedule 2 - Technical Specifications: Technical details and requirements of licensed technology
3. Schedule 3 - Fee Schedule: Detailed breakdown of license fees, royalties, and payment terms
4. Schedule 4 - Service Levels: Performance standards and metrics for licensed services or support
5. Schedule 5 - Territory: Detailed description of geographic territory for license
6. Schedule 6 - Approved Sub-licensees: List of approved sub-licensees if sub-licensing is permitted
7. Appendix A - Usage Guidelines: Guidelines for proper use of licensed property
8. Appendix B - Support and Maintenance Terms: Detailed terms for technical support and maintenance services
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Pharmaceuticals
Software Development
Healthcare
Education
Entertainment
Telecommunications
Automotive
Consumer Goods
Industrial Equipment
Research and Development
Media and Broadcasting
Biotechnology
Energy
Relevant Teams
Legal
Intellectual Property
Business Development
Commercial
Compliance
Operations
Research and Development
Technology
Finance
Risk Management
Corporate Affairs
Information Technology
Product Development
Strategy
International Business
Relevant Roles
Legal Counsel
Intellectual Property Manager
Business Development Director
Chief Technology Officer
Licensing Manager
Commercial Director
Compliance Officer
Contract Administrator
Chief Executive Officer
Chief Legal Officer
Technology Transfer Officer
IP Rights Manager
Partnership Manager
Operations Director
Research and Development Director
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