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Licensing Agent Agreement for Indonesia

Licensing Agent Agreement Template for Indonesia

A Licensing Agent Agreement under Indonesian law establishes a formal relationship between a principal (licensor) and an agent who will represent and promote the principal's products or services within specified territories in Indonesia. The agreement comprehensively covers the agent's authority, responsibilities, compensation structure, and obligations while ensuring compliance with Indonesian commercial and agency laws. It includes specific provisions for intellectual property protection, reporting requirements, and territorial restrictions, all within the framework of Indonesian legal requirements and business practices.

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What is a Licensing Agent Agreement?

A Licensing Agent Agreement is essential when a business (principal) wishes to expand its market presence in Indonesia through an appointed agent who will represent and promote their products or services. This document is particularly relevant for international companies entering the Indonesian market or local companies establishing formal agency networks. The agreement must comply with Indonesian agency laws, including Ministry of Trade regulations on agency relationships and relevant intellectual property laws. It details the agent's scope of authority, territory restrictions, commission structures, performance requirements, and intellectual property usage rights. The document should be carefully drafted to address specific requirements under Indonesian law regarding agency relationships, including potential mandatory provisions and registration requirements with relevant authorities.

What sections should be included in a Licensing Agent Agreement?

1. Parties: Identifies the principal (licensor) and the licensing agent, including their complete legal names and addresses

2. Background: Sets out the context of the agreement, including the principal's business, the agent's expertise, and the intention to establish an agency relationship

3. Definitions: Defines key terms used throughout the agreement, including 'Licensed Products', 'Territory', 'Intellectual Property Rights', etc.

4. Appointment and Scope: Details the appointment of the agent, exclusivity/non-exclusivity, and the territorial scope of the agency

5. Agent's Rights and Obligations: Specifies the agent's authorized activities, responsibilities, and performance standards

6. Principal's Rights and Obligations: Outlines the principal's commitments, support, and responsibilities to the agent

7. Intellectual Property Protection: Addresses the protection and permitted use of the principal's intellectual property

8. Commission Structure: Details the commission rates, calculation methods, and payment terms

9. Reporting and Accounting: Specifies reporting requirements, record-keeping obligations, and audit rights

10. Confidentiality: Establishes obligations regarding confidential information protection

11. Term and Termination: Specifies the duration of the agreement and grounds for termination

12. Post-Termination Obligations: Outlines the parties' obligations after the agreement ends

13. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and sets out dispute resolution procedures

14. General Provisions: Includes standard clauses like force majeure, notices, and amendments

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

1. Sub-Agents: Include when the agent may need to appoint sub-agents in the territory

2. Minimum Performance Requirements: Include when setting specific performance targets for the agent

3. Marketing and Promotion: Include when the agent has specific marketing responsibilities

4. Training and Support: Include when the principal provides specific training or support programs

5. Insurance: Include when specific insurance requirements are needed

6. Non-Competition: Include when restricting the agent from representing competing products

7. Bank Guarantee: Include when financial security is required from the agent

8. Compliance with Anti-Corruption Laws: Include for international arrangements or when dealing with government entities

What schedules should be included in a Licensing Agent Agreement?

1. Schedule 1 - Licensed Products: Detailed list and specifications of products covered by the agreement

2. Schedule 2 - Territory: Detailed description of the geographical territory and any excluded areas

3. Schedule 3 - Commission Rates: Detailed breakdown of commission structures and calculation methods

4. Schedule 4 - Reporting Templates: Standard forms for regular reporting requirements

5. Schedule 5 - Trademark Usage Guidelines: Guidelines for proper use of the principal's trademarks

6. Schedule 6 - Performance Targets: Specific sales or performance targets if applicable

7. Appendix A - Power of Attorney: Format of power of attorney if required under Indonesian law

8. Appendix B - Standard Operating Procedures: Detailed operational procedures and requirements

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

Manufacturing

Consumer Goods

Technology

Pharmaceuticals

Fashion and Apparel

Entertainment

Software and Digital Products

Industrial Equipment

Automotive

Food and Beverage

Retail

Telecommunications

Relevant Teams

Legal

Commercial

Business Development

Sales

Intellectual Property

Operations

Compliance

International Business

Finance

Marketing

Relevant Roles

Legal Counsel

Commercial Director

Business Development Manager

Licensing Manager

Sales Director

Chief Executive Officer

Contract Manager

Intellectual Property Manager

Regional Manager

Operations Director

Compliance Officer

International Business Manager

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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