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Software License Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which software is licensed from the owner (licensor) to a user (licensee). The document incorporates specific requirements of Indonesian legislation, including Law No. 28 of 2014 on Copyright and Law No. 11 of 2008 on Electronic Information and Transactions. It covers essential elements such as license scope, usage rights, restrictions, fees, intellectual property protection, warranties, and compliance with local data protection regulations. The agreement is structured to protect both parties' interests while ensuring adherence to Indonesian legal requirements for software licensing and electronic transactions.

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What is a Software License?

This Software License Agreement template is designed for use in Indonesia and is structured to comply with Indonesian legal requirements, particularly the Copyright Law (Law No. 28 of 2014) and Electronic Information and Transactions Law (Law No. 11 of 2008, as amended). It should be used whenever a software owner wishes to grant usage rights to their software while retaining ownership and controlling how their intellectual property is used. The document includes comprehensive provisions for protecting the licensor's intellectual property rights, defining usage terms, establishing payment conditions, and ensuring compliance with local regulations. It's particularly important in the Indonesian context where specific requirements exist for electronic transactions and data protection. The agreement can be customized for various licensing models, including perpetual, subscription-based, or term-limited licenses, and can accommodate both commercial and consumer licensing scenarios.

What sections should be included in a Software License?

1. Parties: Identification of the licensor and licensee, including their legal details and registered addresses

2. Background: Context of the agreement, including brief description of the software and purpose of the license

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of License: Scope and nature of the license granted, including territory, duration, and type (exclusive/non-exclusive)

5. License Fees and Payment Terms: Financial terms, payment schedule, and payment methods

6. Intellectual Property Rights: Assertion of ownership and protection of IP rights in the software

7. Use Restrictions: Limitations on use, prohibited activities, and user restrictions

8. Obligations of the Licensee: Licensee's responsibilities regarding software use, security, and compliance

9. Support and Maintenance: Terms for technical support, updates, and maintenance services

10. Warranties and Representations: Warranties provided by the licensor and licensee representations

11. Limitation of Liability: Limitations on liability and exclusions of damages

12. Term and Termination: Duration of agreement, renewal terms, and termination conditions

13. Consequences of Termination: Actions required upon termination and surviving provisions

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

15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Software License?

1. Data Protection and Privacy: Required when software processes personal data, ensuring compliance with Indonesian data protection laws

2. Service Level Agreement: Needed for SaaS or hosted software solutions, defining performance metrics and service levels

3. Third-Party Software: Required when the software incorporates third-party components or dependencies

4. Export Controls: Necessary for software subject to international distribution or export regulations

5. Source Code Escrow: Optional provision for critical software where source code access might be required

6. Professional Services: Include when implementation, training, or consulting services are part of the agreement

7. Audit Rights: Optional section for cases requiring usage monitoring or compliance verification

8. Insurance: Required for high-value or critical software implementations

What schedules should be included in a Software License?

1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the 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 SLAs if applicable

4. Schedule 4 - Acceptable Use Policy: Detailed guidelines for acceptable use of the software

5. Schedule 5 - Technical Requirements: Minimum system requirements and technical specifications for software operation

6. Appendix A - Data Processing Terms: Detailed terms for personal data processing, if applicable

7. Appendix B - Security Requirements: Security standards and requirements for software usage and data protection

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

Jurisdiction

Indonesia

Document Type

License Agreement

Cost

Free to use

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