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Trade License Agreement for Indonesia

Trade License Agreement Template for Indonesia

A Trade License Agreement under Indonesian law is a comprehensive legal document that establishes the terms and conditions under which a license holder (Licensor) grants specific trade rights to another party (Licensee) within Indonesia. The agreement must comply with Indonesian trade regulations, including Law No. 7 of 2014 on Trade and related investment laws. It covers essential elements such as license scope, territory restrictions, payment terms, compliance requirements, and obligations of both parties while incorporating specific provisions required by Indonesian regulatory authorities.

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What is a Trade License Agreement?

A Trade License Agreement is essential for businesses seeking to establish licensed trading operations in Indonesia. This document is particularly crucial given Indonesia's specific regulatory requirements and the need to comply with local trade laws. The agreement is used when a business wants to grant another entity the right to trade specific products or services in Indonesia, subject to defined terms and conditions. It includes detailed provisions on licensing scope, territorial rights, payment structures, and compliance with Indonesian regulations such as Law No. 7 of 2014 on Trade and investment laws. The document becomes necessary when entering the Indonesian market through licensing arrangements, whether for retail, distribution, manufacturing, or service-based operations.

What sections should be included in a Trade License Agreement?

1. Parties: Identification of the Licensor and Licensee, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, nature of the Licensor's business, and general purpose of the licensing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms and Indonesian legal terminology

4. Grant of License: Scope and nature of the license being granted, including territory, exclusivity status, and any restrictions

5. License Fees and Payment Terms: Details of licensing fees, payment schedule, payment method, and currency specifications

6. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

7. Obligations of the Licensor: Licensor's responsibilities including support, maintenance, and updates

8. Obligations of the Licensee: Licensee's responsibilities including compliance with usage terms and reporting requirements

9. Intellectual Property Rights: Protection and ownership of IP, including any improvements or modifications

10. Compliance with Laws: Requirements for compliance with Indonesian laws and regulations, including specific trade and licensing regulations

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

What sections are optional to include in a Trade License Agreement?

1. Quality Control: Standards and quality control measures, particularly relevant for manufacturing or product-based licenses

2. Training and Support: Details of technical support and training to be provided, relevant when complex products or services are involved

3. Sub-licensing Rights: Terms for sub-licensing if permitted under the agreement

4. Export Controls: Required for licenses involving international trade or export-controlled items

5. Insurance: Insurance requirements and liability coverage specifications

6. Force Majeure: Provisions for unforeseen circumstances affecting performance

7. Anti-Corruption Compliance: Specific anti-corruption provisions, particularly important for international licensing arrangements

8. Environmental Compliance: Required for licenses involving manufacturing or environmental impacts

What schedules should be included in a Trade License Agreement?

1. Schedule A - Licensed Products/Services: Detailed description of products or services covered by the license

2. Schedule B - Territory: Specific geographical areas covered by the license

3. Schedule C - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms

4. Schedule D - Technical Specifications: Technical requirements and specifications for the licensed products or services

5. Schedule E - Quality Standards: Specific quality standards and testing requirements

6. Schedule F - Reporting Templates: Templates for required periodic reports

7. Appendix 1 - Required Governmental Approvals: List of necessary Indonesian governmental approvals and licenses

8. Appendix 2 - Authorized Users: List of authorized users or facilities under the license

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

Technology

Retail

Consumer Goods

Industrial Products

Pharmaceuticals

Food and Beverage

Automotive

Electronics

Software and IT

Telecommunications

Fashion and Apparel

Chemical Industry

Energy

Agriculture

Relevant Teams

Legal

Commercial

Compliance

Business Development

International Trade

Regulatory Affairs

Corporate Affairs

Finance

Operations

Risk Management

Intellectual Property

Government Relations

Relevant Roles

Legal Counsel

Commercial Director

Licensing Manager

Business Development Manager

Compliance Officer

Chief Executive Officer

Chief Operating Officer

Trade Relations Manager

Regulatory Affairs Director

Contract Administrator

International Business Manager

Country Manager - Indonesia

Head of Legal

Investment Relations Manager

Trade Compliance Specialist

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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