The Proprietary Software License Agreement serves as a crucial legal instrument for software companies operating in Indonesia's growing digital economy. This document is essential when a software owner (licensor) wishes to grant specific usage rights to their proprietary software while maintaining ownership and control over their intellectual property. The agreement must comply with Indonesian legal requirements, particularly those outlined in the Copyright Law and Electronic Information and Transactions Law. It's commonly used in various business contexts, from enterprise software deployment to specialized application licensing, and includes comprehensive terms covering license scope, usage restrictions, maintenance, support, and data protection obligations. The document is particularly important given Indonesia's specific requirements for technology transactions and the need to protect both licensor and licensee interests in software deployments.
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1. Parties: Identification of the licensor and licensee, including their legal status and registered addresses
2. Background: Context of the agreement, brief description of the software, and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms and Indonesian legal terms
4. Grant of License: Scope of the license, including type (e.g., perpetual/term-based), territory, and usage rights
5. License Restrictions: Explicit restrictions on use, copying, modification, and distribution of the software
6. Intellectual Property Rights: Assertion of ownership and protection of IP rights under Indonesian copyright law
7. License Fees and Payment: Payment terms, fee structure, and payment obligations
8. Delivery and Installation: Terms for software delivery, installation procedures, and acceptance criteria
9. Warranties and Representations: Warranties regarding software performance, compliance with laws, and IP rights
10. Support and Maintenance: Terms for technical support, updates, and maintenance services
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of the agreement, renewal terms, and termination rights
13. Effects of Termination: Consequences of termination and post-termination obligations
14. Liability and Indemnification: Limitations of liability and indemnification obligations
15. General Provisions: Standard clauses including governing law, dispute resolution, and notices
1. Professional Services: Terms for additional services such as implementation, training, or customization
2. Hardware Requirements: Specifications for required hardware infrastructure, used when software has specific hardware dependencies
3. Data Protection: Specific provisions for handling personal data under Indonesian regulations, required if software processes personal data
4. Source Code Escrow: Terms for source code escrow arrangements, used for mission-critical software
5. Export Controls: Compliance with export regulations, needed for international licensing
6. Disaster Recovery: Requirements for backup and disaster recovery procedures, important for enterprise software
7. Service Level Agreement: Specific performance metrics and service levels, used for cloud-based or mission-critical software
8. Third-Party Software: Terms relating to third-party components or dependencies
9. Geographic Restrictions: Specific territorial restrictions or requirements, used for geographically limited licenses
1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the licensed software
2. Schedule 2 - License Fees: Detailed breakdown of license fees, payment schedules, and pricing terms
3. Schedule 3 - Support Services: Detailed description of support and maintenance services, including service levels
4. Schedule 4 - Technical Requirements: System requirements and technical specifications for software operation
5. Schedule 5 - Implementation Plan: Timeline and milestones for software implementation, if applicable
6. Appendix A - Authorized Users: List of authorized users or user categories and their access rights
7. Appendix B - Security Requirements: Security protocols and requirements for software usage
8. Appendix C - Documentation: List of user manuals and technical documentation provided
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Healthcare
Financial Services
Education
Manufacturing
Retail
Government
Telecommunications
Professional Services
Energy
Transportation
E-commerce
Relevant Teams
Legal
Information Technology
Procurement
Compliance
Information Security
Risk Management
Commercial Operations
Vendor Management
Software Asset Management
Contract Administration
Relevant Roles
Chief Technology Officer
Legal Counsel
IT Director
Software Licensing Manager
Procurement Manager
Compliance Officer
Contract Administrator
Information Security Officer
Chief Information Officer
Technology Risk Manager
Software Asset Manager
Legal Operations Manager
Chief Legal Officer
Commercial Director
IT Procurement Specialist
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