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Exclusive Sponsorship Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes an exclusive sponsorship relationship between a sponsor and rights holder. The document outlines the exclusive rights granted, financial commitments, brand usage permissions, and mutual obligations of the parties. It incorporates specific Indonesian legal requirements, including compliance with Law No. 5 of 1999 on competition, relevant advertising regulations, and where applicable, Sharia business principles. The agreement includes detailed provisions for intellectual property rights, exclusivity protection, termination conditions, and dispute resolution mechanisms under Indonesian jurisdiction.

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What is a Exclusive Sponsorship Agreement?

The Exclusive Sponsorship Agreement is a crucial document for establishing and managing exclusive commercial sponsorship relationships in Indonesia. It is typically used when a sponsor seeks to secure exclusive rights to associate with a property, event, organization, or personality while preventing competitors from gaining similar rights. The agreement must comply with Indonesian legal framework, including civil law, competition law, and specific industry regulations. This document is essential for high-value sponsorship arrangements where exclusivity is a key commercial consideration. The agreement covers comprehensive aspects including rights granted, financial terms, activation requirements, brand usage guidelines, and protection mechanisms. As an Indonesian law-governed document, it incorporates local legal requirements while following international best practices in sponsorship arrangements.

What sections should be included in a Exclusive Sponsorship Agreement?

1. Parties: Identification of the sponsor and rights holder, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the sponsorship arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Sponsored Properties, Territory, Term, and Exclusivity

4. Grant of Rights: Detailed description of sponsorship rights granted, including exclusivity provisions and category protection

5. Term and Renewal: Duration of the agreement, commencement date, and any renewal options

6. Financial Provisions: Sponsorship fees, payment schedule, and any performance-related bonuses or adjustments

7. Obligations of Rights Holder: Specific commitments and duties of the rights holder in delivering sponsorship benefits

8. Obligations of Sponsor: Sponsor's commitments, including payment obligations and brand guidelines compliance

9. Intellectual Property Rights: Usage rights and restrictions regarding trademarks, logos, and other IP

10. Approval Process: Procedures for approval of sponsorship materials and marketing activities

11. Exclusivity and Category Protection: Detailed terms of exclusivity, protected categories, and any exceptions

12. Compliance and Ethics: Compliance with laws, regulations, and ethical standards, including Indonesian specific requirements

13. Termination: Grounds for termination, notice requirements, and consequences of termination

14. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices

What sections are optional to include in a Exclusive Sponsorship Agreement?

1. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant for event-based sponsorships

2. Ambush Marketing Protection: Additional provisions to prevent and address ambush marketing attempts, relevant for high-profile sponsorships

3. Digital Rights: Specific provisions for digital and social media rights, needed for sponsorships with significant online presence

4. Hospitality Benefits: Details of hospitality packages and VIP arrangements, relevant for event-based sponsorships

5. Performance Bonuses: Additional compensation based on achievement of specific targets or milestones

6. Change of Control: Provisions dealing with ownership changes in either party

7. Islamic Law Compliance: Specific provisions ensuring compliance with Sharia principles, relevant for certain industries or parties

What schedules should be included in a Exclusive Sponsorship Agreement?

1. Schedule 1 - Sponsorship Rights and Benefits: Detailed listing of all sponsorship rights, benefits, and deliverables

2. Schedule 2 - Brand Guidelines: Sponsor's brand usage guidelines and requirements

3. Schedule 3 - Payment Schedule: Detailed payment terms, installments, and any performance-related adjustments

4. Schedule 4 - Approval Procedures: Detailed processes for obtaining approvals for sponsorship activities

5. Schedule 5 - Category Definitions: Detailed definitions of exclusive categories and any permitted exceptions

6. Appendix A - Marketing and Activation Plan: Agreed marketing activities and activation strategies

7. Appendix B - Reporting Requirements: Format and frequency of performance reports and evaluations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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