The License And Service Agreement is a crucial document for businesses operating in Indonesia that combine software licensing with service provision. This agreement is particularly relevant in today's digital economy where software solutions are increasingly delivered alongside supporting services. It is designed to comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Law No. 11 of 2008 on Electronic Information and Transactions, and various regulations governing data protection and consumer rights. The document is typically used when a provider wishes to grant software usage rights while also committing to provide associated services such as maintenance, support, or implementation. It addresses key areas including intellectual property rights, service level commitments, data protection obligations, and operational requirements, all within the context of Indonesian law and business practices.
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1. Parties: Identification of the parties entering into the agreement, including their legal status and registration details as required under Indonesian law
2. Background: Context of the agreement, including brief description of the parties' business and purpose of the agreement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. License Grant: Scope of the license, including type (exclusive/non-exclusive), territory, and permitted uses
5. Services: Description of services to be provided, including scope, delivery methods, and standards
6. Fees and Payment: Payment terms, fee structure, invoicing, and payment methods in compliance with Indonesian banking regulations
7. Intellectual Property Rights: Ownership and protection of IP rights, including any modifications or derivatives
8. Data Protection and Privacy: Obligations regarding data handling and privacy in accordance with Indonesian data protection laws
9. Confidentiality: Protection and handling of confidential information exchanged between parties
10. Service Levels: Performance standards, metrics, and remedies for failure to meet agreed service levels
11. Warranties and Representations: Warranties regarding the license and services, including compliance with Indonesian law
12. Liability and Indemnification: Limitations of liability and indemnification obligations
13. Term and Termination: Duration of agreement, renewal terms, and termination rights and procedures
14. Force Majeure: Events beyond parties' control and their impact on obligations
15. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures
16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Change Control: Procedures for managing changes to services or licensed materials, recommended for complex or long-term agreements
2. Source Code Escrow: Terms for source code escrow arrangements, relevant when software source code access may be required
3. Professional Services: Additional professional services such as implementation or training, if offered
4. Security Requirements: Specific security standards and protocols, important for agreements involving sensitive data or systems
5. Disaster Recovery: Business continuity and disaster recovery procedures, relevant for critical services
6. Insurance: Insurance requirements and coverage obligations, important for high-value or high-risk services
7. Anti-Corruption Compliance: Compliance with anti-corruption laws, important for government or high-value contracts
8. Export Control: Export control compliance, relevant for international licensing arrangements
1. Schedule 1 - Licensed Materials: Detailed description of licensed software, materials, or content
2. Schedule 2 - Service Description: Detailed specification of services, including technical requirements and procedures
3. Schedule 3 - Service Levels: Detailed service level agreements, metrics, and measurement methods
4. Schedule 4 - Fee Schedule: Detailed pricing, payment terms, and fee calculations
5. Schedule 5 - Technical Requirements: Technical specifications and requirements for the license and services
6. Schedule 6 - Support and Maintenance: Details of support and maintenance services, including response times and procedures
7. Schedule 7 - Data Processing Agreement: Detailed terms for personal data processing in compliance with Indonesian regulations
8. Schedule 8 - Change Request Template: Standard form for requesting and documenting changes to services or licensed materials
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