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Technology License Agreement for Indonesia

Technology License Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which a technology owner (licensor) grants rights to use their proprietary technology to another party (licensee). The agreement covers essential aspects including license scope, intellectual property rights, technical implementation requirements, knowledge transfer, quality control, and compliance with Indonesian technology transfer regulations. It includes specific provisions for protecting both parties' interests while ensuring alignment with Indonesian investment and technology laws, particularly Law No. 13 of 2016 on Patents and Law No. 11 of 2008 on Electronic Information and Transactions.

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What is a Technology License Agreement?

The Technology License Agreement serves as a crucial legal framework for technology transfer and implementation in Indonesia. This document is essential when a technology owner wishes to grant another party the right to use, implement, or commercialize their proprietary technology within Indonesian territory. The agreement must comply with various Indonesian regulations, including intellectual property laws, investment regulations, and technology transfer requirements. It typically includes detailed provisions on technical specifications, implementation procedures, knowledge transfer, quality control, and ongoing support arrangements. The document is particularly important given Indonesia's strict requirements for technology transfer agreements and the need to register such agreements with relevant authorities. Used in various contexts from software licensing to industrial technology transfer, this agreement type requires careful consideration of both technical and legal aspects while ensuring alignment with Indonesian business practices and regulatory requirements.

What sections should be included in a Technology License Agreement?

1. Parties: Identification of the licensor and licensee, including their legal status and registered addresses

2. Background: Context of the agreement, overview of the technology, and parties' authority to enter into the agreement

3. Definitions: Detailed definitions of technical terms, licensed technology, and key concepts used throughout the agreement

4. License Grant: Scope of the license, territory, exclusivity/non-exclusivity, and any field-of-use restrictions

5. Intellectual Property Rights: Confirmation of ownership, protection of IP rights, and handling of improvements/modifications

6. Technical Documentation and Support: Requirements for technical documentation delivery and ongoing technical support

7. License Fees and Payment Terms: Financial terms, including royalties, payment schedules, and calculation methods

8. Technology Transfer and Implementation: Process and timeline for technology transfer, implementation requirements, and training provisions

9. Confidentiality: Protection of confidential information and trade secrets

10. Quality Control: Standards, specifications, and quality assurance requirements

11. Term and Termination: Duration of the agreement, renewal terms, and termination conditions

12. Warranties and Representations: Standard warranties regarding IP ownership, technology functionality, and authority to license

13. Indemnification: Mutual indemnification obligations, particularly for IP infringement claims

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

15. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment

What sections are optional to include in a Technology License Agreement?

1. Export Control: Required for cross-border technology transfers subject to export control regulations

2. Source Code Escrow: Relevant for software licensing where source code protection is required

3. Hardware Requirements: Necessary when the licensed technology includes hardware components

4. Data Protection: Required when the technology involves processing personal data

5. Localization Requirements: Needed when Indonesian regulations require local content or localization

6. Competition Compliance: Required for licenses that might impact market competition

7. Insurance: Relevant for high-risk technology implementations

8. Performance Metrics: Optional section for defining specific performance requirements and benchmarks

9. Sublicensing Rights: Required if sublicensing is permitted under the agreement

10. Research and Development: Needed when ongoing R&D collaboration is part of the arrangement

What schedules should be included in a Technology License Agreement?

1. Schedule A - Technical Specifications: Detailed technical specifications of the licensed technology

2. Schedule B - Implementation Timeline: Milestone-based timeline for technology transfer and implementation

3. Schedule C - License Fee Schedule: Detailed breakdown of license fees, royalty calculations, and payment schedules

4. Schedule D - Support and Maintenance Services: Specifications of technical support and maintenance obligations

5. Schedule E - Quality Standards: Detailed quality control requirements and testing procedures

6. Schedule F - Training Program: Overview of required training programs and materials

7. Appendix 1 - Approved Sub-contractors: List of approved sub-contractors for implementation if applicable

8. Appendix 2 - Security Requirements: Technical and organizational security requirements

9. Appendix 3 - Compliance Checklist: Checklist of Indonesian regulatory requirements and compliance measures

10. Appendix 4 - Form of Reports: Templates for required technical and financial reporting

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

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Information Technology

Software Development

Telecommunications

Manufacturing

Healthcare Technology

Financial Technology

Educational Technology

Industrial Automation

Biotechnology

Clean Technology

Agricultural Technology

Digital Media

E-commerce

Artificial Intelligence

Internet of Things

Relevant Teams

Legal

Information Technology

Research and Development

Intellectual Property

Business Development

Technical Operations

Compliance

Commercial

Innovation

Risk Management

Project Management

Implementation

Strategy

Procurement

Relevant Roles

Chief Technology Officer

Head of Legal

Intellectual Property Counsel

Technology Transfer Manager

Licensing Director

Business Development Manager

Technical Implementation Manager

Chief Information Officer

Head of Research and Development

Compliance Officer

Contract Manager

Innovation Director

Chief Executive Officer

Technology Commercialization Manager

Legal Counsel

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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