The Product Licensing Agreement serves as a crucial legal framework for businesses seeking to expand their product presence in the Indonesian market through authorized third parties. This document is essential when a product owner wishes to grant another party the rights to manufacture, distribute, or sell their products while maintaining control over their intellectual property and ensuring quality standards. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata), Law No. 13 of 2016 on Patents, and other relevant IP and commercial regulations. It typically includes detailed provisions on licensing scope, territory restrictions, royalty payments, quality control measures, and compliance with local regulations. The agreement is particularly important given Indonesia's complex regulatory environment and requirements for local business participation.
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1. Parties: Identification and details of the licensor and licensee
2. Background: Context of the agreement, including brief description of the product and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. License Grant: Scope, nature, and limitations of the license being granted, including territory and exclusivity provisions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Payment Terms: License fees, royalties, payment schedule, and calculation methods
7. Intellectual Property Rights: Ownership and protection of IP rights, including improvements and modifications
8. Quality Control: Quality standards, inspection rights, and approval procedures
9. Obligations of the Licensor: Licensor's responsibilities including technical support and documentation
10. Obligations of the Licensee: Licensee's responsibilities including reporting, minimum sales, and marketing requirements
11. Confidentiality: Protection and handling of confidential information
12. Warranties and Representations: Warranties regarding IP ownership, product quality, and compliance with laws
13. Indemnification: Mutual indemnification obligations and procedures
14. Termination: Grounds for termination, notice requirements, and post-termination obligations
15. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms
16. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment
1. Training and Support: Detailed provisions for technical training and ongoing support when the licensed product requires significant technical knowledge
2. Localization Requirements: Specific provisions for product adaptation to local market when required
3. Manufacturing Standards: Detailed manufacturing requirements and standards when the license includes manufacturing rights
4. Anti-Corruption Compliance: Specific anti-corruption provisions for high-risk territories or government-related contracts
5. Export Control: Export control provisions when the product is subject to export restrictions
6. Sub-licensing Rights: Terms governing sub-licensing when permitted under the agreement
7. Insurance Requirements: Specific insurance obligations for high-risk products or activities
8. Product Liability: Detailed product liability provisions for consumer products
9. Environmental Compliance: Environmental standards and compliance requirements for environmentally sensitive products
1. Schedule 1 - Licensed Products: Detailed description and specifications of the licensed products
2. Schedule 2 - Territory: Detailed definition of the licensed territory including any excluded areas
3. Schedule 3 - Payment Terms: Detailed payment terms, royalty calculations, and reporting requirements
4. Schedule 4 - Quality Standards: Technical specifications and quality control requirements
5. Schedule 5 - Trademark Usage Guidelines: Guidelines for proper use of licensed trademarks
6. Schedule 6 - Technical Support Services: Description of technical support services and service levels
7. Appendix A - Approved Manufacturing Facilities: List of approved manufacturing facilities if applicable
8. Appendix B - Reporting Templates: Standard forms for required periodic reports
9. Appendix C - Product Documentation: Technical documentation, manuals, and specifications
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Consumer Goods
Pharmaceuticals
Automotive
Software and IT
Food and Beverage
Electronics
Fashion and Apparel
Industrial Equipment
Telecommunications
Healthcare
Entertainment and Media
Relevant Teams
Legal
Intellectual Property
Business Development
Commercial
Operations
Quality Assurance
Compliance
Product Management
Sales
Manufacturing
Finance
Research and Development
Corporate Strategy
Relevant Roles
Chief Executive Officer
Legal Counsel
Intellectual Property Manager
Business Development Director
Commercial Director
Operations Manager
Quality Control Manager
Compliance Officer
Product Manager
Sales Director
Manufacturing Director
Technology Transfer Manager
Licensing Manager
Contract Administrator
Chief Financial Officer
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