Document background
The License and Royalty Agreement is a crucial document used when one party (licensor) wishes to grant another party (licensee) the right to use specific intellectual property while maintaining ownership rights. This agreement type is particularly important in the Indonesian market, where specific regulatory requirements exist for IP licensing arrangements. The document must comply with Indonesian intellectual property laws, including mandatory registration with the Directorate General of Intellectual Property, and address specific local law requirements such as language provisions and recording obligations. It typically includes detailed terms about the scope of rights granted, territory restrictions, quality control measures, and comprehensive royalty calculation and payment provisions. This agreement is essential for businesses expanding their presence in Indonesia through licensing arrangements, whether for trademarks, patents, copyrights, or other forms of intellectual property.
