The Commercial License Agreement serves as a crucial legal instrument in Indonesian business transactions where one party wishes to grant another the right to use its intellectual property, technology, or proprietary assets while maintaining ownership rights. This document type is essential for businesses operating under Indonesian jurisdiction, requiring compliance with the Indonesian Civil Code, Law No. 28 of 2014 on Copyright, and other relevant IP and commercial regulations. It's particularly important for cross-border transactions, technology transfers, and commercial partnerships where clear terms of use, protection of IP rights, and compliance with local laws are essential. The agreement typically includes detailed provisions on scope, territory, duration, payment terms, quality control, and dispute resolution mechanisms, all structured to align with Indonesian legal requirements and business practices.
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1. Parties: Identification of the licensor and licensee with complete legal details
2. Background: Context of the agreement and brief description of the licensed material/property
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope, nature, and territory of the license (exclusive/non-exclusive, transferable/non-transferable)
5. License Fee and Payment Terms: Financial terms, payment schedule, and currency specifications
6. Duration and Termination: Term of the license, renewal provisions, and termination circumstances
7. Licensee Obligations: Key responsibilities and restrictions on the licensee's use of licensed material
8. Licensor Obligations: Responsibilities of the licensor including support and maintenance if applicable
9. Intellectual Property Rights: Ownership declarations and IP protection measures
10. Confidentiality: Protection of confidential information and trade secrets
11. Warranties and Representations: Statements of fact and promises by both parties
12. Indemnification: Protection against third-party claims and liability allocation
13. Governing Law and Jurisdiction: Specification of Indonesian law and choice of courts/dispute resolution
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Quality Control: Required when licensing involves branded products or services requiring quality standards
2. Sub-licensing Rights: Include when licensee is permitted to sub-license the rights
3. Territory Restrictions: Needed when license is limited to specific geographic areas
4. Technical Support: Include when licensor provides ongoing technical support
5. Source Code Escrow: For software licenses where source code protection is required
6. Export Control: Required for international licenses subject to export regulations
7. Insurance Requirements: Include when specific insurance coverage is required from licensee
8. Performance Metrics: When license includes specific performance or usage targets
9. Audit Rights: Include when licensor requires right to audit licensee's use or payments
10. Data Protection: Required when license involves processing of personal data
1. Schedule 1 - Licensed Material: Detailed description of the licensed intellectual property or material
2. Schedule 2 - Fee Schedule: Detailed breakdown of license fees, royalties, and payment terms
3. Schedule 3 - Technical Specifications: Technical details and requirements for the licensed material
4. Schedule 4 - Service Level Agreement: Details of support services and performance standards if applicable
5. Schedule 5 - Approved Sub-licensees: List of pre-approved sub-licensees if applicable
6. Appendix A - Usage Guidelines: Specific guidelines for using the licensed material
7. Appendix B - Quality Control Standards: Detailed quality control requirements and procedures
8. Appendix C - Reporting Templates: Templates for required periodic reports
9. Appendix D - Territory Map: Geographic boundaries of licensed territory if applicable
Relevant legal definitions
Clauses
Relevant Industries
Technology
Software Development
Manufacturing
Healthcare
Education
Entertainment
Media
Telecommunications
Pharmaceutical
Biotechnology
Automotive
Consumer Goods
Industrial Equipment
Energy
Financial Services
Retail
E-commerce
Relevant Teams
Legal
Intellectual Property
Commercial
Business Development
Licensing
Compliance
Operations
Finance
Technology
Research and Development
Corporate Affairs
Risk Management
International Business
Strategy
Product Development
Relevant Roles
Legal Counsel
Intellectual Property Manager
Commercial Director
Business Development Manager
Licensing Manager
Contract Administrator
Chief Technology Officer
Chief Executive Officer
Chief Legal Officer
IP Rights Specialist
Commercial Manager
Partnership Manager
Compliance Officer
General Counsel
Operations Director
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