The License To Use Trademark agreement is essential for businesses seeking to expand their brand presence in Indonesia while maintaining control over their intellectual property. This document is typically used when a trademark owner wishes to permit another entity to use their trademark(s) in Indonesia under specific conditions and terms. The agreement must comply with Indonesian trademark law, particularly Law No. 20 of 2016 and related regulations, which require specific provisions and registration with authorities. It's commonly used in franchise arrangements, manufacturing partnerships, or when international companies enter the Indonesian market through local partners. The document includes detailed provisions for quality control, payment terms, and usage restrictions, ensuring the trademark owner maintains brand integrity while allowing controlled commercial exploitation of the mark.
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1. Parties: Identification of the Licensor and Licensee with complete legal names and addresses
2. Background: Context of the agreement, including details of trademark ownership and registration
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the license, including territory, exclusivity/non-exclusivity, and permitted uses
5. Term and Renewal: Duration of the license and conditions for renewal
6. Quality Control: Standards and procedures for maintaining trademark quality and brand reputation
7. Royalties and Payment Terms: Financial terms, payment schedules, and calculation of royalties
8. Obligations of the Licensee: Licensee's responsibilities in using and protecting the trademark
9. Obligations of the Licensor: Licensor's ongoing obligations and support
10. Intellectual Property Protection: Provisions for protecting the trademark and handling infringement
11. Termination: Grounds and procedures for termination and post-termination obligations
12. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms under Indonesian law
13. General Provisions: Standard contractual provisions including notices, amendments, and severability
1. Sub-licensing Rights: Include when the licensee is permitted to grant sub-licenses
2. Marketing and Promotion: Include when specific marketing requirements or restrictions apply
3. Export Restrictions: Include when the license has territorial restrictions or export controls
4. Training and Support: Include when the licensor will provide technical or operational support
5. Insurance Requirements: Include when specific insurance coverage is required
6. Change of Control: Include when restrictions on corporate changes are needed
7. Minimum Performance Requirements: Include when setting specific sales or performance targets
1. Schedule A - Licensed Trademarks: Detailed list of licensed trademarks including registration numbers and classes
2. Schedule B - Licensed Territory: Detailed description of geographical areas where license is valid
3. Schedule C - Quality Standards: Specific quality control requirements and standards
4. Schedule D - Royalty Calculations: Detailed methodology for calculating royalties
5. Schedule E - Approved Products/Services: List of products or services approved for trademark use
6. Appendix 1 - Brand Guidelines: Visual and usage guidelines for the trademark
7. Appendix 2 - Approval Procedures: Procedures for obtaining approval for trademark usage
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