The IP License Agreement is a crucial document used when one party (licensor) grants another party (licensee) the right to use specific intellectual property rights in Indonesia. This agreement type is essential for businesses seeking to commercialize IP assets while maintaining protection under Indonesian law. The document covers various forms of intellectual property including patents, trademarks, copyrights, and trade secrets, and must comply with Indonesian regulations such as Law No. 24 of 2019 on Creative Economy and related IP legislation. It's particularly important for foreign companies entering the Indonesian market, as it must address specific local requirements for IP licensing and technology transfer. The agreement typically includes detailed provisions on scope, territory, royalty payments, quality control, and dispute resolution mechanisms that align with Indonesian legal frameworks.
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1. Parties: Identification of the licensor and licensee, including their full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of the intellectual property, and the parties' intentions
3. Definitions: Detailed definitions of key terms used throughout the agreement, including specific IP-related terminology
4. Grant of License: Scope of the license, including type (exclusive/non-exclusive), territory, and permitted uses
5. License Fee and Payment Terms: Financial terms including license fees, royalties, payment schedule, and calculation methods
6. Protection and Use of IP: Obligations regarding IP protection, quality control, and proper usage of the licensed IP
7. Representations and Warranties: Parties' assertions about IP ownership, right to license, and non-infringement
8. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
9. Confidentiality: Obligations regarding protection of confidential information exchanged during the agreement
10. Indemnification: Parties' obligations to protect each other against third-party claims
11. Governing Law and Dispute Resolution: Applicable law (Indonesian) and methods for resolving disputes
12. General Provisions: Standard clauses including notices, assignment, amendment procedures, and severability
1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties
2. Technology Transfer: Include when agreement involves transfer of technical knowledge or training
3. Source Code Escrow: Include for software IP licenses to protect licensee's access to source code
4. Quality Control Procedures: Include for trademark licenses or when specific quality standards must be maintained
5. Export Control: Include when licensed IP may be subject to export restrictions
6. Localization Rights: Include when licensee has rights to adapt IP for local market
7. Improvements and Modifications: Include when parties need to address ownership and rights to improvements
8. Marketing and Promotion: Include when agreement involves specific marketing obligations or restrictions
1. Schedule A - Licensed Intellectual Property: Detailed description of all IP being licensed, including registration numbers
2. Schedule B - Technical Specifications: Technical details, standards, and requirements for the licensed IP
3. Schedule C - Commercial Terms: Detailed payment terms, royalty calculations, and reporting requirements
4. Schedule D - Territory: Specific geographical areas covered by the license
5. Schedule E - Quality Control Standards: Detailed quality requirements and testing procedures
6. Schedule F - Support Services: Details of any technical support or maintenance services
7. Appendix 1 - Approved Form of Reports: Templates for required reporting under the agreement
8. Appendix 2 - Brand Guidelines: Guidelines for proper use of licensed trademarks or branding
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