This Commercial Software License Agreement template is designed for use in Indonesia when a software provider wishes to license their software products to customers while retaining ownership of the intellectual property. The document complies with Indonesian legal requirements, particularly the Copyright Law and Electronic Information and Transactions Law, while incorporating international best practices in software licensing. It is typically used for both standardized software products and customized solutions, covering perpetual or subscription-based licensing models. The agreement includes essential provisions for software usage rights, technical specifications, support services, data protection, and compliance with local regulations. This template is particularly relevant for transactions where either the licensor or licensee is an Indonesian entity, or where the software will be deployed within Indonesian jurisdiction.
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1. Parties: Identification of the licensor and licensee, including their legal status and registered addresses
2. Background: Context of the agreement, brief description of the software, and purpose of the license
3. Definitions: Defined terms used throughout the agreement, including technical terms and specific software components
4. License Grant: Scope of the license, usage rights, and any territorial or user number limitations
5. License Restrictions: Specific prohibitions and limitations on use of the software
6. Intellectual Property Rights: Confirmation of ownership and protection of IP rights in the software
7. Payment Terms: License fees, payment schedule, and payment methods
8. Delivery and Installation: Terms for software delivery, installation process, and acceptance criteria
9. Support and Maintenance: Basic support services and maintenance terms included with the license
10. Warranties and Disclaimers: Software performance warranties and standard disclaimers
11. Limitation of Liability: Limits on liability and exclusions of certain types of damages
12. Confidentiality: Protection of confidential information exchanged during the license relationship
13. Term and Termination: Duration of the license and grounds for termination
14. Post-Termination Obligations: Actions required upon termination of the license
15. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Data Protection and Privacy: Required if the software processes personal data or when compliance with Indonesian Data Protection Law is necessary
2. Service Level Agreement: Include for enterprise software requiring specific performance metrics and availability guarantees
3. Subscription Terms: Required for subscription-based licensing models with recurring payments
4. Third-Party Software: Include when the software incorporates third-party components or dependencies
5. Export Controls: Required for software subject to export regulations or international distribution
6. Source Code Escrow: Optional protection for licensee through source code escrow arrangements
7. Professional Services: Include when additional implementation or customization services are provided
8. High Availability and Disaster Recovery: Required for mission-critical software applications
1. Schedule 1 - Software Description: Detailed description of the software, including modules, features, and technical specifications
2. Schedule 2 - License Fees: Detailed breakdown of license fees, payment schedules, and pricing terms
3. Schedule 3 - Support Services: Detailed support and maintenance terms, including service levels and response times
4. Schedule 4 - Technical Requirements: Minimum system requirements and technical specifications for the software
5. Schedule 5 - Acceptable Use Policy: Detailed terms of acceptable use and specific restrictions
6. Appendix A - Data Processing Terms: Detailed data protection and processing terms if applicable
7. Appendix B - Service Level Metrics: Detailed service level commitments and performance metrics if applicable
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