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Brand Licensing Agreement for Indonesia

Brand Licensing Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which a brand owner (licensor) grants another party (licensee) the right to use its trademarks, logos, and other brand assets. The agreement complies with Indonesian intellectual property regulations, particularly Law No. 20 of 2016 on Marks and Geographical Indications, and includes provisions for quality control, royalty payments, territorial restrictions, and brand usage guidelines. The document incorporates specific requirements for trademark license recording with the Directorate General of Intellectual Property Rights of Indonesia.

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What is a Brand Licensing Agreement?

The Brand Licensing Agreement serves as a crucial legal instrument for companies looking to expand their brand presence in the Indonesian market through authorized third-party usage. This document is essential when a trademark owner wishes to permit another entity to use its registered marks while maintaining control over brand integrity and receiving compensation for such use. The agreement must comply with Indonesian intellectual property laws, particularly regarding mandatory license recording requirements and local commercial regulations. It typically includes detailed provisions on quality control, royalty structures, territorial limitations, and brand usage guidelines. This type of agreement is particularly relevant in today's market where brand collaboration and expansion strategies are increasingly important for business growth in Southeast Asia's largest economy.

What sections should be included in a Brand Licensing Agreement?

1. Parties: Identification of the licensor and licensee, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, confirmation of trademark ownership, and general intent of the parties

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Licensed Marks', 'Territory', 'Licensed Products', and 'Effective Date'

4. Grant of License: Scope of the license granted, including territory, exclusivity status, and permitted uses

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. License Fees and Royalties: Financial terms including initial fees, ongoing royalties, payment terms, and reporting requirements

7. Quality Control: Standards for product/service quality, approval processes, and inspection rights

8. Protection of Licensed Marks: Obligations regarding trademark protection, infringement reporting, and enforcement

9. Representations and Warranties: Statements of fact and guarantees by both parties

10. Use of the Licensed Marks: Specific requirements and restrictions for brand usage

11. Records and Audit Rights: Requirements for maintaining records and licensor's audit rights

12. Confidentiality: Protection of confidential information exchanged during the agreement

13. Termination: Grounds for termination, notice requirements, and post-termination obligations

14. General Provisions: Standard clauses including notices, assignment, governing law, and dispute resolution

What sections are optional to include in a Brand Licensing Agreement?

1. Sub-licensing Rights: Include when licensee is permitted to grant sub-licenses to third parties

2. International Usage: Include when the license extends to multiple jurisdictions

3. Marketing and Promotion: Include when specific marketing requirements or restrictions need to be detailed

4. E-commerce Provisions: Include when licensed marks will be used in online commerce

5. Social Media Usage: Include when the license covers social media presence

6. Corporate Social Responsibility: Include when specific CSR requirements are imposed on the licensee

7. Force Majeure: Include when specific force majeure provisions beyond standard clauses are needed

8. Insurance Requirements: Include when specific insurance coverage is required for the licensee

What schedules should be included in a Brand Licensing Agreement?

1. Schedule 1 - Licensed Marks: Detailed list and images of all licensed trademarks, including registration numbers

2. Schedule 2 - Licensed Products/Services: Comprehensive list of products or services covered by the license

3. Schedule 3 - Brand Guidelines: Detailed specifications for brand usage, including color codes, positioning, and size requirements

4. Schedule 4 - Quality Control Standards: Specific quality standards and testing requirements for licensed products

5. Schedule 5 - Royalty Calculations: Detailed methodology for calculating royalties and examples

6. Schedule 6 - Approved Manufacturers/Suppliers: List of approved manufacturers or suppliers (if applicable)

7. Schedule 7 - Territory Definition: Detailed description of geographic territories covered by the license

8. Schedule 8 - Reporting Templates: Standard forms for sales reports and royalty calculations

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions







































Clauses







































Relevant Industries

Retail

Consumer Goods

Fashion and Apparel

Food and Beverage

Entertainment

Sports

Technology

Hospitality

Automotive

Electronics

Cosmetics and Personal Care

Toys and Games

Education

Media and Publishing

Relevant Teams

Legal

Brand Management

Intellectual Property

Commercial

Business Development

Compliance

Marketing

Finance

Operations

International Business

Relevant Roles

Legal Counsel

Brand Manager

Licensing Director

Commercial Director

Intellectual Property Manager

Business Development Manager

Chief Legal Officer

Chief Commercial Officer

Compliance Officer

Contract Manager

Brand Protection Manager

Marketing Director

Operations Director

Finance Director

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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