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Royalty Share Agreement Template for Indonesia

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Key Requirements PROMPT example:

Royalty Share Agreement

"I need a Royalty Share Agreement under Indonesian law for a software company licensing its AI technology to a manufacturing company, with quarterly royalty payments of 5% of net sales and minimum annual guarantees."

Document background
The Royalty Share Agreement serves as a crucial legal instrument in Indonesian business transactions where parties seek to commercialize intellectual property rights and establish clear revenue-sharing arrangements. This document is particularly relevant when IP owners wish to monetize their intellectual property while maintaining ownership rights, or when multiple parties contribute to the development and commercialization of IP assets. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), relevant IP laws, and tax regulations. It typically includes detailed provisions for calculating royalties, payment mechanisms, reporting obligations, audit rights, and dispute resolution procedures. The document is essential for businesses operating in Indonesia that need to formalize their IP commercialization arrangements while ensuring legal compliance and protecting all parties' interests.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement, including their legal status and addresses

2. Background: Context of the agreement, relationship between parties, and brief description of the intellectual property involved

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Net Revenue', 'Royalty Period', 'Intellectual Property', etc.

4. Grant of Rights: Specific rights being granted, scope of use, and any territorial limitations

5. Calculation of Royalties: Formula and methodology for calculating royalty shares, including basis for calculations and excluded revenues

6. Payment Terms: Payment frequency, method, currency, and timing of royalty payments

7. Reporting and Auditing: Requirements for financial reporting, record-keeping, and audit rights

8. Intellectual Property Protection: Obligations regarding IP protection, registration, and enforcement

9. Term and Termination: Duration of agreement, renewal terms, and grounds for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Representations and Warranties: Standard warranties regarding IP ownership, authority to contract, and non-infringement

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

Optional Sections

1. Currency Conversion: Include when payments involve foreign currencies, specifying exchange rate sources and timing

2. Minimum Guarantee: Include when there's a minimum royalty payment requirement regardless of actual revenues

3. Quality Control: Include when the IP usage requires maintaining certain quality standards

4. Sub-licensing Rights: Include when sub-licensing is permitted, specifying terms and conditions

5. Marketing and Promotion: Include when parties have specific marketing obligations or restrictions

6. Tax Provisions: Include detailed tax handling when cross-border payments are involved

7. Force Majeure: Include when parties want specific provisions for handling unforeseen circumstances

8. Insurance: Include when specific insurance coverage is required for IP exploitation

Suggested Schedules

1. Schedule A - Intellectual Property Description: Detailed description of all IP covered by the agreement

2. Schedule B - Royalty Calculation Examples: Examples showing how royalties will be calculated in various scenarios

3. Schedule C - Reporting Template: Standard format for periodic royalty reports

4. Schedule D - Approved Products/Services: List of products or services approved for IP usage

5. Schedule E - Territory Definition: Detailed description of geographical territories covered

6. Appendix 1 - Bank Account Details: Banking information for royalty payments

7. Appendix 2 - Authorized Representatives: List of authorized contacts for various aspects of agreement administration

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions























































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Relevant Industries

Technology

Media & Entertainment

Manufacturing

Pharmaceuticals

Software Development

Publishing

Fashion & Retail

Consumer Goods

Biotechnology

Research & Development

Gaming

Music Industry

Film & Television

Industrial Design

Educational Content

Relevant Teams

Legal

Finance

Intellectual Property

Business Development

Commercial

Research and Development

Product Development

Compliance

Licensing

Innovation

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Business Development Manager

Finance Director

Licensing Manager

Chief Technology Officer

Content Director

Research Director

Product Manager

Innovation Manager

Compliance Officer

Contract Administrator

Chief Financial Officer

IP Commercialization Specialist

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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