The Non-Exclusive License Agreement serves as a crucial legal instrument in the Indonesian market for companies and individuals seeking to license intellectual property rights while maintaining the flexibility to grant similar rights to other parties. This document type is particularly relevant in situations where the IP owner wishes to maximize the commercial potential of their intellectual property through multiple licensing arrangements in Indonesia. It must comply with various Indonesian regulations, including Law No. 13 of 2016 on Patents, Law No. 28 of 2014 on Copyright, and Government Regulation No. 36 of 2018 on the Recording of IP License Agreements. The agreement typically includes provisions for technology transfer, quality control, payment terms, and territorial restrictions, all while ensuring alignment with Indonesian competition law and investment regulations.
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1. Parties: Identification of the Licensor and Licensee with their complete legal details
2. Background: Context of the agreement, description of the intellectual property, and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the non-exclusive license, permitted uses, and territorial limitations
5. License Fee and Payment Terms: Financial terms, payment schedule, and calculation of royalties if applicable
6. Duration and Termination: Term of the agreement, renewal provisions, and termination circumstances
7. Intellectual Property Rights: Confirmation of IP ownership and protection of rights
8. Obligations of the Licensor: Licensor's commitments regarding IP maintenance and support
9. Obligations of the Licensee: Licensee's commitments regarding use of the licensed IP and quality control
10. Warranties and Representations: Parties' warranties regarding IP ownership, authority to contract, and non-infringement
11. Confidentiality: Protection of confidential information exchanged during the license period
12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
13. General Provisions: Standard clauses including notices, assignment, and entire agreement
1. Sub-licensing Rights: Include when the licensee is permitted to sub-license the IP to third parties
2. Technology Transfer: Include when the license involves transfer of technical knowledge or training
3. Quality Control: Include for trademark licenses or when product quality standards must be maintained
4. Export Controls: Include when the licensed IP is subject to export regulations
5. Improvements and Modifications: Include when parties anticipate development of improvements to the licensed IP
6. Source Code Escrow: Include for software licenses where source code access may be needed
7. Competition Compliance: Include when there are specific competition law considerations
8. Insurance: Include when specific insurance coverage is required for the licensed activities
1. Schedule 1 - Licensed Intellectual Property: Detailed description of the IP being licensed, including registration numbers
2. Schedule 2 - License Fee Structure: Detailed breakdown of fees, royalty calculations, and payment terms
3. Schedule 3 - Technical Specifications: Technical details and specifications of the licensed IP
4. Schedule 4 - Quality Control Standards: Specific quality requirements and testing procedures if applicable
5. Schedule 5 - Approved Sub-licensees: List of pre-approved sub-licensees if sub-licensing is permitted
6. Appendix A - Reporting Templates: Standard forms for required reports and royalty calculations
7. Appendix B - Support Services: Details of any technical support or maintenance services provided
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