The Trade Secret License Agreement is a crucial document used when a company or individual holding valuable trade secrets wishes to monetize their intellectual property by allowing another party to use it under specific conditions, while maintaining its confidential nature. This agreement type is particularly important in Indonesia, where trade secrets are protected under Law No. 30 of 2000 on Trade Secrets and must comply with local intellectual property regulations and business competition laws. The document is essential for technology transfer arrangements, manufacturing processes, and other business relationships involving proprietary information. It includes comprehensive provisions for protecting the licensed trade secrets, defining permitted uses, establishing security protocols, and setting compensation terms, while ensuring compliance with Indonesian legal requirements for both domestic and international licensing arrangements.
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1. Parties: Identification of the Licensor and Licensee, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, relationship between parties, and general purpose of the license
3. Definitions: Defined terms used throughout the agreement, including 'Trade Secrets', 'Confidential Information', 'Licensed Rights', etc.
4. Grant of License: Scope of the license granted, including permitted uses and territorial restrictions
5. Confidentiality Obligations: Specific obligations to maintain secrecy and protect the trade secrets
6. Security Measures: Required security protocols and measures to protect the trade secrets
7. Payment Terms: License fees, royalties, payment schedule, and calculation methods
8. Term and Termination: Duration of the agreement, renewal terms, and termination rights
9. Post-Termination Obligations: Obligations that survive termination, including ongoing confidentiality duties
10. Warranties and Representations: Warranties regarding ownership, right to license, and non-infringement
11. Indemnification: Indemnification obligations of both parties
12. Governing Law and Dispute Resolution: Choice of law, jurisdiction, and dispute resolution mechanisms
1. Sublicensing Rights: Include when the Licensee is permitted to sublicense the trade secrets to third parties
2. Improvements: Include when parties want to address ownership and usage rights of improvements made to the trade secrets
3. Quality Control: Include for manufacturing or process-related trade secrets requiring specific quality standards
4. Export Control: Include when the trade secrets are subject to export control regulations
5. Insurance: Include when specific insurance coverage is required for the licensed activities
6. Employee Training: Include when specific training requirements are needed for handling the trade secrets
7. Audit Rights: Include when the Licensor requires rights to audit the Licensee's use and protection of trade secrets
1. Schedule A - Description of Trade Secrets: Detailed description of the licensed trade secrets, including technical specifications, processes, or formulas
2. Schedule B - Security Protocols: Detailed security measures and protocols required for protecting the trade secrets
3. Schedule C - Authorized Personnel: List of personnel authorized to access and use the trade secrets
4. Schedule D - License Fee Schedule: Detailed breakdown of license fees, royalty calculations, and payment terms
5. Schedule E - Required Reports: Format and content requirements for periodic reports on trade secret usage
6. Appendix 1 - Non-Disclosure Agreement: Standard form NDA for employees and contractors
7. Appendix 2 - Security Breach Protocol: Procedures to follow in case of actual or suspected security breaches
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Chemical Industry
Pharmaceutical
Food and Beverage
Automotive
Electronics
Software Development
Research and Development
Biotechnology
Industrial Processing
Consumer Goods
Relevant Teams
Legal
Intellectual Property
Research and Development
Executive Leadership
Technology
Operations
Business Development
Compliance
Innovation
Commercial
Relevant Roles
Chief Legal Officer
Intellectual Property Manager
General Counsel
Licensing Director
Chief Technology Officer
Research and Development Director
Commercial Director
Chief Executive Officer
Legal Counsel
Innovation Manager
Business Development Manager
Compliance Officer
Technology Transfer Manager
Operations Director
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