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Sponsorship Partnership Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates a sponsorship partnership between two or more parties. The document outlines the terms and conditions of the sponsorship arrangement, including financial commitments, rights and obligations of both parties, intellectual property usage, promotional requirements, and performance metrics. It incorporates specific provisions to comply with Indonesian regulations, including those related to advertising, consumer protection, and financial transactions, while providing a clear framework for managing the sponsorship relationship and resolving potential disputes under Indonesian jurisdiction.

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What is a Sponsorship Partnership Agreement?

The Sponsorship Partnership Agreement is a crucial legal document used to formalize sponsorship arrangements in Indonesia, providing a comprehensive framework for both sponsors and sponsees. This document is essential when organizations or individuals seek to establish commercial sponsorship relationships, whether for events, activities, programs, or ongoing partnerships. It addresses key aspects such as financial terms, brand usage rights, promotional obligations, and performance requirements, while ensuring compliance with Indonesian legal requirements including advertising regulations, consumer protection laws, and tax obligations. The agreement is particularly important in the Indonesian market where sponsorship relationships often involve complex arrangements requiring clear documentation of rights and responsibilities, specific performance metrics, and proper protection of intellectual property rights under local law.

What sections should be included in a Sponsorship Partnership Agreement?

1. Parties: Identifies the sponsor and sponsee with their full legal names, registration numbers, and addresses

2. Background: Outlines the context of the sponsorship arrangement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Sponsorship: Details the nature and extent of the sponsorship arrangement

5. Term and Duration: Specifies the commencement date and duration of the sponsorship agreement

6. Sponsorship Rights and Benefits: Lists all rights granted to the sponsor, including branding, marketing, and promotional opportunities

7. Financial Terms: Specifies sponsorship fees, payment schedule, and any additional financial obligations

8. Obligations of the Sponsor: Details the sponsor's responsibilities and commitments

9. Obligations of the Sponsee: Outlines the sponsee's duties and deliverables

10. Intellectual Property Rights: Addresses the usage and protection of trademarks, logos, and other IP

11. Approval and Quality Control: Establishes processes for approving promotional materials and maintaining quality standards

12. Reporting and Performance Metrics: Defines reporting requirements and performance evaluation criteria

13. Confidentiality: Protects confidential information shared between parties

14. Termination: Specifies conditions and procedures for ending the agreement

15. Force Majeure: Addresses unforeseeable circumstances preventing contract fulfillment

16. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for disputes

17. General Provisions: Includes standard contractual clauses like notices, amendments, and assignment

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

1. Exclusivity: Used when the sponsor requires exclusive rights in their industry category

2. Digital Rights: Included for sponsorships involving significant digital or social media components

3. Hospitality Benefits: Added when the sponsorship includes tickets, VIP access, or entertainment privileges

4. Crisis Management: Included for high-profile sponsorships requiring specific protocols for managing public relations issues

5. Insurance Requirements: Added for sponsorships involving events or activities with significant risk exposure

6. Anti-Corruption Compliance: Included for international sponsors or when required by corporate compliance policies

7. Naming Rights: Used when the sponsorship includes naming rights for venues, events, or programs

8. Merchandise Rights: Added when the sponsorship involves the creation or sale of merchandise

What schedules should be included in a Sponsorship Partnership Agreement?

1. Schedule A - Sponsorship Benefits and Rights: Detailed list of all sponsorship benefits, including specific marketing rights and exposure opportunities

2. Schedule B - Brand Guidelines: Sponsor's brand usage requirements and specifications

3. Schedule C - Payment Schedule: Detailed breakdown of payment amounts, dates, and methods

4. Schedule D - Approval Procedures: Step-by-step process for obtaining approvals for promotional materials

5. Schedule E - Performance Metrics: Specific KPIs and measurement criteria for evaluating sponsorship effectiveness

6. Appendix 1 - Approved Marks and Logos: Visual representations of authorized brand elements

7. Appendix 2 - Territory and Venues: Geographic scope and specific locations covered by the sponsorship

8. Appendix 3 - Contact Details: List of key contacts and their roles for both parties

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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