The Royalty License agreement is a crucial document for businesses seeking to monetize their intellectual property rights or acquire rights to use others' IP in Indonesia. This agreement type is particularly relevant given Indonesia's growing focus on protecting and commercializing intellectual property, as evidenced by recent legislative developments including the Creative Economy Law and updated IP regulations. The document is designed to address both domestic and international licensing arrangements, incorporating mandatory provisions under Indonesian law while following international best practices. It includes comprehensive provisions for royalty calculations, payment terms, quality control, and compliance with local regulations, making it suitable for various types of intellectual property including patents, trademarks, copyrights, and trade secrets. The agreement's structure ensures proper recording with relevant Indonesian authorities, particularly important since the Minister of Law and Human Rights Regulation No. 8 of 2016 requires registration of IP license agreements.
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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 intellectual property, and parties' intentions
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. Term and Termination: Duration of the agreement and circumstances for termination
6. Royalty Payments: Calculation method, payment terms, currency, and reporting requirements
7. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights
8. Intellectual Property Protection: Ownership confirmation, protection obligations, and infringement procedures
9. Quality Control: Standards for using the licensed IP and quality maintenance requirements
10. Representations and Warranties: Parties' statements about their authority and IP ownership
11. Confidentiality: Protection of confidential information exchanged during the agreement
12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
13. General Provisions: Standard clauses including notices, assignment, and amendments
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses
2. Technology Transfer: Include when technical knowledge or training is part of the license
3. Minimum Performance Requirements: Include when setting minimum sales or usage targets
4. Export Restrictions: Include when there are territorial restrictions or export controls
5. Insurance: Include when specific insurance coverage is required
6. Bank Guarantee: Include when financial security is required from licensee
7. Change of Control: Include when change in ownership affects license rights
8. Source Code Escrow: Include for software licenses requiring code protection
9. Localization Requirements: Include when local content or adaptation is required
1. Schedule 1 - Licensed Intellectual Property: Detailed description of all IP being licensed, including registration numbers
2. Schedule 2 - Royalty Calculations: Detailed formula and examples of royalty calculations
3. Schedule 3 - Quality Standards: Specific quality requirements and testing procedures
4. Schedule 4 - Reporting Template: Standard format for regular royalty reports
5. Schedule 5 - Technical Specifications: Technical details of licensed technology or products
6. Appendix A - Approved Form of Sub-license: Template for sub-licensing if permitted
7. Appendix B - Brand Guidelines: Guidelines for using licensed trademarks or branding
8. Appendix C - Territory Map: Geographical definition of licensed territory
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Manufacturing
Pharmaceuticals
Consumer Goods
Media and Entertainment
Telecommunications
Fashion and Luxury Goods
Automotive
Food and Beverage
Biotechnology
Industrial Design
Gaming and Interactive Entertainment
Relevant Teams
Legal
Intellectual Property
Finance
Commercial
Business Development
Research and Development
Compliance
Technology Transfer
Innovation
International Business
Licensing Operations
Relevant Roles
Intellectual Property Director
Licensing Manager
Legal Counsel
Commercial Director
Business Development Manager
Chief Technology Officer
Research and Development Director
Finance Director
Compliance Officer
Contract Manager
Innovation Manager
Technology Transfer Officer
Chief Legal Officer
Intellectual Property Counsel
Royalty Accounting Manager
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