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Trade Mark Licence Agreement for Indonesia

Trade Mark Licence Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that enables a trademark owner (licensor) to grant rights to use their registered trademarks to another party (licensee) under specific terms and conditions. The agreement must comply with Law No. 20 of 2016 on Marks and Geographical Indications and requires mandatory recordal with the Indonesian Trademark Office. It includes detailed provisions on quality control, royalty payments, territorial restrictions, and brand usage guidelines, while incorporating specific Indonesian legal requirements such as language provisions and local registration obligations.

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What is a Trade Mark Licence Agreement?

The Trade Mark Licence Agreement is a crucial document for businesses seeking to expand their brand presence in Indonesia through licensed partnerships. This agreement is essential when a trademark owner wishes to permit another entity to use their registered marks while maintaining control over their brand integrity. The document must conform to Indonesian law, particularly Law No. 20 of 2016 on Marks and Geographical Indications, and requires mandatory recordal with the Indonesian Trademark Office. It is commonly used in franchise arrangements, manufacturing partnerships, and brand expansions, providing a structured framework for commercial exploitation of trademark rights while ensuring proper brand protection. The agreement typically includes comprehensive provisions on quality control, royalty structures, territorial limitations, and compliance with local regulations, making it suitable for both domestic and international licensing arrangements in the Indonesian market.

What sections should be included in a Trade Mark Licence Agreement?

1. Parties: Identification of the Licensor and Licensee with complete legal names and addresses

2. Background: Context of the agreement, confirmation of trademark ownership, and general intent of the parties

3. Definitions: Defined terms including Licensed Marks, Territory, Licensed Products, Effective Date, etc.

4. Grant of License: Scope of the license (exclusive/non-exclusive), permitted uses, and territorial restrictions

5. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination

6. License Fees and Royalties: Financial terms, payment schedules, reporting requirements, and audit rights

7. Quality Control: Standards for use of the mark, approval processes, and quality maintenance requirements

8. Protection of the Licensed Marks: Obligations regarding trademark protection, infringement actions, and cooperation

9. Representations and Warranties: Standard warranties about ownership, right to license, and validity of marks

10. Record of License: Requirements for recording the license with Indonesian IP Office as per regulations

11. Confidentiality: Protection of confidential information exchanged during the agreement

12. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Trade Mark Licence Agreement?

1. Sub-licensing Rights: Include when the licensee is permitted to grant sub-licenses to third parties

2. Minimum Performance Requirements: Include when there are specific sales targets or minimum royalty requirements

3. Marketing and Promotion: Include when specific marketing obligations or restrictions apply

4. Non-Competition: Include when the licensee is restricted from competing activities

5. Local Registration Requirements: Include when the licensee needs to register as a registered user in specific territories

6. Technology Transfer: Include when technical knowledge or know-how is being transferred along with the trademark

7. Corporate Social Responsibility: Include when there are specific CSR requirements for the Indonesian market

What schedules should be included in a Trade Mark Licence Agreement?

1. Schedule 1 - Licensed Marks: Detailed list of all licensed trademarks, including registration numbers and classes

2. Schedule 2 - Licensed Products: Comprehensive list of products/services covered by the license

3. Schedule 3 - Territory: Detailed description of geographic territories where license is granted

4. Schedule 4 - Quality Standards: Specific quality control requirements and standards for the Licensed Products

5. Schedule 5 - Brand Guidelines: Detailed guidelines for proper use of the Licensed Marks

6. Schedule 6 - Royalty Calculations: Detailed methodology for calculating royalties and reporting requirements

7. Appendix A - Approval Procedures: Step-by-step procedures for obtaining approval for use of marks

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

Consumer Goods

Retail

Fashion and Luxury

Food and Beverage

Franchising

Manufacturing

Technology

Pharmaceuticals

Cosmetics

Automotive

Entertainment

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Compliance

Brand Management

Marketing

Finance

Operations

Relevant Roles

Intellectual Property Counsel

Legal Director

Commercial Director

Brand Manager

Licensing Manager

Business Development Manager

Chief Legal Officer

Compliance Officer

Contract Manager

General Counsel

IP Portfolio Manager

Regional Director

Franchise 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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