An Out Licensing Agreement under Indonesian law is essential when a business wants to monetize its intellectual property by granting rights to another party while maintaining ownership. This document is particularly relevant for both domestic and cross-border licensing transactions in Indonesia, requiring careful consideration of local regulations including mandatory language requirements, technology transfer regulations, and investment laws. The agreement typically includes detailed provisions on license scope, territory restrictions, royalty structures, quality control measures, and compliance with Indonesian regulatory requirements. It's commonly used in various scenarios from technology licensing to trademark franchising, and must address specific Indonesian legal requirements such as those under Law No. 13 of 2016 on Patents and related IP regulations.
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1. Parties: Identification of licensor and licensee, including registration details as required by Indonesian law
2. Background: Context of the agreement, ownership of intellectual property, and purpose of the licensing arrangement
3. Definitions: Comprehensive definitions including Licensed IP, Territory, Field of Use, and other key terms
4. Grant of License: Scope of license, territory, exclusivity/non-exclusivity, and field of use restrictions
5. Term and Termination: Duration of agreement, renewal terms, and termination conditions
6. Financial Terms: License fees, royalties, payment terms, and currency considerations
7. Obligations of the Parties: Specific duties of licensor and licensee, including quality control and reporting
8. IP Protection and Enforcement: Maintenance of IP rights, handling of infringement, and prosecution responsibilities
9. Representations and Warranties: Standard warranties regarding IP ownership, right to license, and non-infringement
10. Confidentiality: Protection of confidential information and trade secrets
11. Indemnification: Indemnification obligations and liability limitations
12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
13. General Provisions: Standard boilerplate clauses including notices, assignment, and amendment procedures
1. Technology Transfer: Include when the license involves significant technical knowledge transfer or training
2. Quality Control: Required for trademark licenses or when product quality standards are crucial
3. Regulatory Compliance: Include when licensed products/services require specific regulatory approvals
4. Export Control: Include for cross-border licenses involving controlled technology or products
5. Improvements and New Developments: Include when parties anticipate development of improvements to licensed IP
6. Supply Chain Requirements: Include when license involves manufacturing or distribution arrangements
7. Marketing and Promotion: Include for licenses requiring specific marketing commitments or restrictions
8. Anti-Corruption Compliance: Include for international licensing deals to ensure FCPA/local anti-corruption compliance
1. Schedule 1 - Licensed IP: Detailed description of all intellectual property being licensed
2. Schedule 2 - Territory and Field of Use: Specific definition of geographic territory and permitted applications
3. Schedule 3 - Financial Terms: Detailed royalty calculations, minimum payments, and payment procedures
4. Schedule 4 - Technical Specifications: Technical details of licensed technology or products
5. Schedule 5 - Quality Control Standards: Quality requirements and testing procedures
6. Schedule 6 - Reporting Requirements: Templates and procedures for required reports
7. Appendix A - Form of Royalty Report: Standard template for royalty reporting
8. Appendix B - Technical Documentation: Supporting technical documents and specifications
9. Appendix C - Trademark Usage Guidelines: Guidelines for proper use of licensed trademarks if applicable
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Manufacturing
Pharmaceuticals and Healthcare
Consumer Goods
Industrial Products
Telecommunications
Media and Entertainment
Fashion and Retail
Food and Beverage
Automotive
Energy and Resources
Biotechnology
Electronics
Agricultural Technology
Relevant Teams
Legal
Intellectual Property
Commercial
Business Development
Research and Development
Finance
Compliance
Technology Transfer
Risk Management
International Business
Strategy
Operations
Relevant Roles
Chief Legal Officer
Head of Intellectual Property
Licensing Director
Commercial Director
Chief Technology Officer
Business Development Manager
IP Counsel
Legal Counsel
Contract Manager
Technology Transfer Manager
Compliance Officer
Chief Financial Officer
Risk Manager
Innovation Director
Research and Development Director
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