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Sponsorship Agency Agreement for Indonesia

Sponsorship Agency Agreement Template for Indonesia

This agreement, governed by Indonesian law, establishes a legal framework for the relationship between a sponsorship agency and a principal sponsor. It outlines the agency's authority to identify, negotiate, and manage sponsorship opportunities on behalf of the principal. The document addresses key aspects including commission structures, approval processes, intellectual property rights, and compliance with Indonesian advertising and sponsorship regulations. It includes specific provisions for reporting, performance metrics, and brand protection while ensuring alignment with local business practices and legal requirements.

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What is a Sponsorship Agency Agreement?

The Sponsorship Agency Agreement is essential for businesses seeking to establish formal representation for their sponsorship activities in Indonesia. This document is particularly relevant in the context of Indonesia's growing marketing and advertising landscape, where companies increasingly rely on specialized agencies to manage their sponsorship portfolios. The agreement needs to comply with Indonesian civil law, advertising regulations, and relevant industry-specific requirements. It typically includes comprehensive terms covering agency appointment, service scope, commission structures, and compliance requirements. This document is crucial when a company wants to delegate sponsorship activities to a professional agency while maintaining control over brand usage and sponsorship decisions. The agreement should be tailored to accommodate both local and international sponsorship opportunities while ensuring compliance with Indonesian legal frameworks.

What sections should be included in a Sponsorship Agency Agreement?

1. Parties: Identification of the Agency and the Principal/Sponsor, including full legal names and addresses

2. Background: Context of the agreement, including the Principal's business and desire for sponsorship services, and the Agency's expertise

3. Definitions: Key terms used throughout the agreement, including 'Sponsorship Activities', 'Territory', 'Sponsorship Properties', etc.

4. Appointment and Scope: Formal appointment of the Agency and detailed scope of services

5. Agency's Rights and Obligations: Detailed responsibilities of the Agency in securing and managing sponsorship opportunities

6. Principal's Rights and Obligations: Principal's responsibilities, including provision of materials and approvals

7. Financial Terms: Commission structure, payment terms, expenses, and financial reporting

8. Intellectual Property: Usage rights, protection of Principal's brands and marks

9. Confidentiality: Protection of confidential information and trade secrets

10. Term and Termination: Duration of agreement and termination provisions

11. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms

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

1. Non-Competition: Restrictions on Agency representing competing brands - include when exclusivity is required

2. Insurance: Insurance requirements - include for high-value sponsorships or high-risk activities

3. Force Majeure: Provisions for unforeseen circumstances - important for long-term or event-based sponsorships

4. Anti-Corruption: Compliance with anti-corruption laws - essential when dealing with government entities or international sponsors

5. Data Protection: Data handling and privacy provisions - include when personal data processing is involved

6. Currency and Tax: Specific provisions for international deals involving multiple currencies or cross-border payments

What schedules should be included in a Sponsorship Agency Agreement?

1. Schedule 1 - Services Description: Detailed breakdown of agency services and deliverables

2. Schedule 2 - Commission Structure: Detailed commission rates and calculation methods

3. Schedule 3 - Approved Sponsorship Categories: List of pre-approved categories for sponsorship targeting

4. Schedule 4 - Reporting Templates: Standard formats for activity and financial reporting

5. Schedule 5 - Brand Guidelines: Principal's branding requirements and usage guidelines

6. Appendix A - Key Performance Indicators: Measurable targets and performance metrics

7. Appendix B - Approval Process: Workflow for obtaining approvals on sponsorship opportunities

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

Agency Agreement

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Sports & Entertainment

Media & Broadcasting

Consumer Goods

Financial Services

Telecommunications

Automotive

Food & Beverage

Technology

Retail

Education

Relevant Teams

Legal

Marketing

Brand Management

Commercial

Sponsorship

Business Development

Compliance

Finance

Corporate Communications

Procurement

Relevant Roles

Marketing Director

Brand Manager

Sponsorship Manager

Legal Counsel

Commercial Director

Business Development Manager

Chief Marketing Officer

Partnerships Manager

Compliance Officer

Contract Manager

Agency Relations Manager

Brand Licensing 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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