The Business Software License Agreement serves as a critical legal framework for software deployment in Indonesian business environments. This document is essential when a software provider wishes to grant usage rights to business customers while retaining ownership and controlling the software's implementation. It ensures compliance with Indonesian regulations, particularly regarding electronic transactions, intellectual property rights, and data protection. The agreement typically includes comprehensive terms covering license scope, technical requirements, support services, and payment terms, while incorporating specific provisions required under Indonesian law. This document is particularly relevant in the context of Indonesia's growing digital economy and increasing adoption of business software solutions across various sectors.
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1. Parties: Identification of the licensor and licensee, including their complete legal names, registration numbers, and registered addresses as required under Indonesian law
2. Background: Context of the agreement, brief description of the software, and the parties' intention to enter into a licensing arrangement
3. Definitions: Detailed definitions of technical terms, software components, and key concepts used throughout the agreement
4. License Grant: Specific terms of the license, including scope, territory, and type (exclusive/non-exclusive) in accordance with Indonesian Copyright Law
5. License Fees and Payment Terms: Detailed breakdown of license fees, payment schedule, and payment methods compliant with Indonesian banking regulations
6. Software Deployment and Access: Technical specifications for software deployment, access methods, and user authentication requirements
7. Usage Restrictions: Specific limitations on software use, including user limits, prohibited activities, and territory restrictions
8. Intellectual Property Rights: Clear statement of IP ownership and protection measures under Indonesian Copyright Law
9. Confidentiality: Obligations regarding confidential information and trade secrets protection
10. Technical Support and Maintenance: Scope of support services, response times, and maintenance terms
11. Term and Termination: Duration of the license, renewal terms, and grounds for termination
12. Warranties and Disclaimers: Software performance warranties and limitations of liability
13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
14. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment rights
1. Data Protection and Privacy: Required if the software processes personal data or when compliance with Indonesian data protection regulations is necessary
2. Third-Party Software Components: Include when the licensed software incorporates third-party components or requires third-party licenses
3. Export Controls: Necessary when the software is subject to international export restrictions or contains controlled technology
4. Professional Services: Include when additional implementation, customization, or training services are part of the agreement
5. Service Level Agreement (SLA): Required for software provided as a service (SaaS) or when specific performance metrics are guaranteed
6. Business Continuity and Disaster Recovery: Important for mission-critical software or when required by regulatory compliance
7. Source Code Escrow: Include when source code escrow arrangements are part of the agreement for business continuity purposes
1. Schedule 1 - Software Description and Specifications: Detailed technical specifications, features, and functionality of the licensed software
2. Schedule 2 - License Fees and Payment Schedule: Detailed breakdown of all fees, payment terms, and pricing models
3. Schedule 3 - Technical Support and Service Levels: Detailed support terms, service levels, and maintenance specifications
4. Schedule 4 - Authorized Users and Access Rights: Definition of authorized users, access levels, and user administration procedures
5. Schedule 5 - Implementation Plan: Timeline and milestones for software deployment and implementation
6. Appendix A - Acceptable Use Policy: Detailed rules and guidelines for software usage and restrictions
7. Appendix B - Technical Requirements: Minimum system requirements and technical specifications for software operation
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Financial Services
Manufacturing
Healthcare
Retail
Professional Services
Education
Telecommunications
E-commerce
Energy
Transportation and Logistics
Government and Public Sector
Relevant Teams
Legal
Information Technology
Procurement
Finance
Compliance
Operations
Information Security
Software Development
Vendor Management
Risk Management
Contract Administration
Relevant Roles
Chief Technology Officer
IT Director
Legal Counsel
Procurement Manager
Software Development Manager
Compliance Officer
Information Security Manager
Operations Director
Finance Director
Technical Project Manager
Business Development Manager
Contract Administrator
Chief Information Officer
Chief Legal Officer
Vendor Management Specialist
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