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International License Agreement for Indonesia

International License Agreement Template for Indonesia

This comprehensive legal document governs the licensing of intellectual property rights between an international licensor and an Indonesian licensee, structured under Indonesian law. It establishes the terms and conditions for the use, exploitation, and commercialization of intellectual property rights, including provisions for payment, quality control, and compliance with local regulations. The agreement incorporates specific requirements under Indonesian IP laws, foreign investment regulations, and mandatory local content provisions where applicable, while ensuring alignment with international licensing standards and practices.

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International License Agreement

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What is a International License Agreement?

The International License Agreement is essential for businesses seeking to formalize intellectual property licensing arrangements in Indonesia. This document is particularly crucial when foreign companies wish to grant rights to Indonesian entities to use, manufacture, distribute, or commercialize their intellectual property. The agreement must comply with Indonesian legal requirements, including the Indonesian Civil Code, relevant IP laws, and foreign investment regulations. It typically includes detailed provisions on scope of rights, territory restrictions, payment terms, quality control measures, and dispute resolution mechanisms. The document serves as a critical tool for protecting IP rights while enabling business expansion in the Indonesian market, and must be carefully structured to address both international licensing practices and local regulatory requirements.

What sections should be included in a International License Agreement?

1. Parties: Identification of the licensor and licensee, including full legal names and addresses

2. Background: Context of the agreement, ownership of the licensed rights, and purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Grant of License: Scope of the license, including territory, exclusivity, and permitted uses

5. License Fees and Payment Terms: Financial terms, including royalties, payment schedules, and calculation methods

6. Protection of Intellectual Property: Provisions for maintaining and protecting the licensed IP rights

7. Quality Control and Standards: Requirements for maintaining quality standards and compliance

8. Representations and Warranties: Statements of fact and promises by both parties

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Confidentiality: Protection of confidential information exchanged during the agreement

11. Governing Law and Dispute Resolution: Choice of law and methods for resolving disputes

12. General Provisions: Standard boilerplate clauses including notices, assignment, and amendment procedures

What sections are optional to include in a International License Agreement?

1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses

2. Technology Transfer: Include for agreements involving technical knowledge transfer

3. Training and Support: Include when technical training or ongoing support is part of the agreement

4. Marketing and Promotion: Include for trademark licenses requiring specific marketing obligations

5. Export Control: Include when licensed products/technology are subject to export restrictions

6. Source Code Escrow: Include for software licenses where source code protection is required

7. Performance Targets: Include when license is conditional on achieving specific performance metrics

8. Local Content Requirements: Include when Indonesian law requires local content or participation

What schedules should be included in a International License Agreement?

1. Schedule 1 - Licensed Rights: Detailed description of the intellectual property being licensed

2. Schedule 2 - Technical Specifications: Technical details, standards, and requirements for licensed products/technology

3. Schedule 3 - Payment Terms: Detailed payment schedules, royalty calculations, and reporting requirements

4. Schedule 4 - Quality Control Procedures: Specific quality control requirements and testing procedures

5. Schedule 5 - Territory: Detailed description of geographic territories covered by the license

6. Appendix A - Approved Forms: Standard forms for reports, notices, or other required communications

7. Appendix B - Brand Guidelines: Guidelines for use of licensed trademarks or branding elements

8. Appendix C - Support Services: Details of any technical support or maintenance services included

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 | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions






































Clauses






































Relevant Industries

Technology

Manufacturing

Consumer Goods

Pharmaceuticals

Software and IT

Media and Entertainment

Telecommunications

Automotive

Fashion and Retail

Food and Beverage

Industrial Equipment

Research and Development

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Finance

Operations

Research and Development

International Business

Compliance

Technical

Product Development

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Business Development Manager

Chief Technology Officer

Licensing Manager

Compliance Officer

Contract Administrator

Chief Financial Officer

Operations Director

Research and Development Director

International Business Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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