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Trademark License Agreement Between Parent And Subsidiary for Indonesia

Trademark License Agreement Between Parent And Subsidiary Template for Indonesia

A specialized agreement governed by Indonesian law that establishes the terms and conditions under which a parent company licenses its trademarks to its subsidiary. The agreement complies with Indonesian trademark law (Law No. 20 of 2016 on Marks and Geographical Indications) and corporate regulations, addressing quality control, usage rights, and regulatory requirements. It includes specific provisions for maintaining the parent company's control over its intellectual property while enabling the subsidiary to effectively use the trademarks in its business operations, with consideration for Indonesian transfer pricing and related party transaction requirements.

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What is a Trademark License Agreement Between Parent And Subsidiary?

A Trademark License Agreement Between Parent And Subsidiary is essential when a parent company wishes to formally authorize its subsidiary to use its trademarks in Indonesia while maintaining proper control and protection of its intellectual property rights. This document is particularly important in the Indonesian context due to specific local requirements for trademark licensing, including mandatory registration with the Directorate General of Intellectual Property. The agreement should be used when establishing new subsidiary operations, restructuring existing arrangements, or formalizing informal trademark usage within a corporate group. It addresses key aspects such as quality control, usage parameters, regulatory compliance, and intra-group transaction considerations. The document needs to balance the parent company's need to protect its intellectual property with the practical requirements of the subsidiary's operations, while ensuring compliance with Indonesian trademark law, corporate law, and transfer pricing regulations.

What sections should be included in a Trademark License Agreement Between Parent And Subsidiary?

1. Parties: Identification of the parent company as licensor and subsidiary as licensee, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, establishing the parent-subsidiary relationship, trademark ownership, and business purpose of the license

3. Definitions: Definitions of key terms including Licensed Marks, Territory, Licensed Products, and other relevant terms

4. Grant of License: Scope of the trademark license, including territory, exclusivity, and any restrictions on use

5. Term and Renewal: Duration of the license agreement and conditions for renewal

6. Quality Control: Parent company's right to monitor and control quality of products/services using the Licensed Marks

7. Usage Guidelines: Specific requirements for how the trademarks must be used, including format, placement, and brand guidelines

8. Regulatory Compliance: Obligations regarding trademark registration and recording of the license agreement with Indonesian authorities

9. Royalties and Payment: Financial terms, even if nominal, to maintain arm's length principles

10. Maintenance and Protection: Responsibilities for maintaining and protecting the trademarks

11. Termination: Circumstances under which the agreement can be terminated and consequences of termination

12. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices

What sections are optional to include in a Trademark License Agreement Between Parent And Subsidiary?

1. Sub-licensing Rights: Include when the subsidiary needs the right to grant sub-licenses to third parties

2. Sales and Marketing Requirements: Include when specific marketing or sales obligations need to be imposed on the subsidiary

3. Group Companies Provision: Include when other group companies need rights to use the trademarks

4. Technology Transfer: Include when associated technical knowledge or know-how is being transferred along with the trademark license

5. Export Restrictions: Include when there are specific territorial restrictions or export controls

6. Local Language Requirements: Include when Indonesian language version is required by law or practice

What schedules should be included in a Trademark License Agreement Between Parent And Subsidiary?

1. Schedule 1 - Licensed Marks: Details and representations of all trademarks covered by the agreement, including registration numbers

2. Schedule 2 - Licensed Products/Services: Comprehensive list of products or services for which the trademarks may be used

3. Schedule 3 - Brand Guidelines: Detailed specifications for trademark usage, including color schemes, positioning, and size requirements

4. Schedule 4 - Quality Control Procedures: Specific procedures and standards for maintaining quality control

5. Schedule 5 - Royalty Calculation: Method for calculating royalties if applicable, including transfer pricing considerations

6. Appendix A - Form of Quarterly Report: Template for required periodic reports on trademark usage and compliance

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

User Agreement

Cost

Free to use
Relevant legal definitions



































Clauses





































Relevant Industries

Manufacturing

Retail

Consumer Goods

Technology

Food and Beverage

Pharmaceuticals

Fashion and Luxury

Automotive

Electronics

Financial Services

Telecommunications

Healthcare

Hospitality

E-commerce

Relevant Teams

Legal

Intellectual Property

Corporate Affairs

Brand Management

Finance

Tax

Compliance

Commercial Operations

Risk Management

Corporate Development

Relevant Roles

Legal Counsel

Intellectual Property Manager

Corporate Secretary

Chief Legal Officer

Brand Manager

Compliance Officer

Commercial Director

Chief Executive Officer

Chief Financial Officer

Intellectual Property Counsel

Corporate Development Manager

Licensing Manager

Operations Director

Tax Manager

Risk 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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