A Trade Mark License Agreement is essential when a trademark owner wishes to grant rights to use their registered trademark(s) to another party in Indonesia. This document is particularly relevant for businesses expanding their presence in the Indonesian market through licensing arrangements, whether for manufacturing, distribution, or service provision. The agreement must comply with Indonesian trademark law, particularly Law No. 20 of 2016 on Marks and Geographical Indications, and requires mandatory recordal with the Directorate General of Intellectual Property. It typically includes detailed provisions on quality control, territory restrictions, royalty payments, and usage guidelines, while addressing specific Indonesian regulatory requirements and business practices. This agreement type is commonly used in franchise arrangements, brand expansions, and manufacturing licenses in Indonesia.
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1. Parties: Identification of the Licensor and Licensee with their complete legal details and addresses
2. Background: Context of the agreement, details of trademark ownership and registration, and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement, including Licensed Marks, Territory, and Licensed Products
4. Grant of License: Scope of the license grant, including type (exclusive/non-exclusive), territory, and permitted uses
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. License Fees and Payments: Financial terms including royalties, payment schedules, and calculation methods
7. Quality Control: Standards for product/service quality, inspection rights, and approval procedures
8. Protection and Enforcement: Obligations regarding trademark protection, infringement actions, and cooperation in enforcement
9. Use of the Marks: Requirements and restrictions on how the Licensed Marks may be used
10. Recordal: Requirements for recording the license with Indonesian IP Office and maintaining registrations
11. Representations and Warranties: Parties' warranties regarding trademark ownership, authority to license, and validity
12. Confidentiality: Protection of confidential information exchanged during the relationship
13. Termination: Grounds for termination, termination procedures, and post-termination obligations
14. General Provisions: Standard contract clauses including governing law, dispute resolution, and notices
1. Sub-licensing Rights: Include when the Licensee is permitted to grant sub-licenses
2. Marketing and Promotion: Include when specific marketing obligations or restrictions are required
3. Supply of Products: Include for licenses involving manufacture of physical products
4. Training and Support: Include when technical support or training is part of the license arrangement
5. Export Restrictions: Include when there are specific territorial restrictions or export controls
6. Local Registration Requirements: Include for specific Indonesian local business or regulatory requirements
7. Competition Law Compliance: Include when specific provisions are needed to comply with Indonesian competition law
8. Currency and Exchange Rate: Include for international agreements with specific currency provisions
1. Licensed Marks: Detailed list of all licensed trademarks including registration numbers and status
2. Licensed Products/Services: Comprehensive description of products/services covered by the license
3. Quality Standards and Specifications: Detailed quality control requirements and technical specifications
4. Royalty Calculations: Detailed methodology for calculating royalties and reporting requirements
5. Approved Form of Trademark Use: Guidelines and examples of approved trademark usage
6. Territory Definition: Detailed description of geographic territories and any restrictions
7. Trademark Registration Certificates: Copies of relevant trademark registration certificates
8. Required Local Registrations: List of required local business registrations and permits
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