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A Shared Software License agreement allows multiple parties to legally share access to software applications while ensuring compliance with Indonesian intellectual property and electronic transaction laws. This document creates a structured framework that protects both the software provider's rights and the licensees' usage requirements under Indonesian law.

When do you need this document?

You need a Shared Software License when multiple organizations want to collectively purchase and use expensive software to reduce individual licensing costs. This arrangement is common in industry consortiums, joint ventures, or partnerships where several companies require access to specialized software applications. Educational institutions often use shared licensing for academic software, while government agencies may collaborate on procurement of administrative systems. The document becomes essential when traditional single-user licenses are cost-prohibitive or when collaborative projects require shared access to proprietary software tools.

Key legal considerations

The agreement must clearly define the scope of usage rights for each party, including permitted number of users, installation locations, and access restrictions. Cost-sharing provisions should specify payment responsibilities, including initial license fees, maintenance costs, and upgrade expenses. You must address intellectual property protection clauses that prevent unauthorized copying, modification, or redistribution of the software. The document should include termination procedures that protect all parties' interests if one licensee withdraws from the arrangement. Data security and confidentiality provisions are crucial, especially when the software processes sensitive information. Support and maintenance responsibilities must be clearly allocated between the software provider and licensees.

Legal requirements in Indonesia

Under Law No. 28 of 2014 on Copyright, software licensing agreements must respect the exclusive rights of copyright holders and cannot exceed the scope of granted permissions. The agreement must comply with Law No. 11 of 2008 on Electronic Information and Transactions if executed or distributed electronically, including requirements for digital signatures and electronic document validity. Indonesian Civil Code provisions govern contract formation, requiring clear offer and acceptance, legal capacity of parties, and lawful consideration. Consumer Protection Law No. 8 of 1999 may apply if end-users are involved, mandating fair terms and adequate dispute resolution mechanisms. The agreement should be drafted in Bahasa Indonesia or include certified translations to ensure enforceability in Indonesian courts. All parties must have proper legal standing and authorization to enter into software licensing arrangements under Indonesian corporate law.