The Sub License Agreement is utilized when a licensee under a main license agreement wishes to grant certain rights to a third party in Indonesia. This document is essential for businesses expanding their operations through authorized sub-licensing arrangements while ensuring compliance with Indonesian legal requirements. The agreement must carefully balance the rights and obligations flowing from the main license agreement with local regulatory requirements, including mandatory provisions under Indonesian IP laws, recordal requirements with the Indonesian IP Office, and relevant tax regulations. It typically includes detailed provisions on scope of rights, quality control, payment terms, and compliance with both the main license terms and local laws. This type of agreement is particularly important in industries where intellectual property rights are frequently commercialized through tiered licensing structures.
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1. Parties: Identification of the Sub-Licensor and Sub-Licensee, including their full legal names, registration numbers, and addresses
2. Background: Context of the agreement, including reference to the main license agreement and confirmation of authority to grant sub-licenses
3. Definitions: Key terms used in the agreement, including Licensed IP, Territory, Field of Use, and specific Indonesian legal terms
4. Grant of Sub-License: Scope of the sub-license, including territory, field of use, and any restrictions
5. Main License Compliance: Obligations to comply with main license terms and flow-down provisions
6. Payment Terms: License fees, royalties, payment schedule, and currency specifications
7. Tax Provisions: Treatment of withholding tax and other applicable Indonesian tax requirements
8. Sub-Licensee Obligations: Specific duties, quality control, reporting requirements, and compliance obligations
9. IP Protection: Obligations regarding IP protection, maintenance, and enforcement
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration, renewal options, and termination circumstances
12. Post-Termination: Obligations and rights after agreement termination
13. Governing Law: Specification of Indonesian law as governing law
14. Dispute Resolution: Dispute resolution procedures under Indonesian jurisdiction
1. Quality Control: Required for trademark sub-licenses or when specific quality standards must be maintained
2. Technology Transfer: Required when the sub-license includes technology transfer provisions under Indonesian regulations
3. Export Control: Required when the sub-license involves international trade or restricted technologies
4. Government Approvals: Required when the sub-licensed activity requires specific governmental approvals
5. Local Content Requirements: Required when the sub-licensed activity is subject to Indonesian local content requirements
6. Competition Compliance: Required when the sub-license might raise competition law concerns
7. Insurance: Required when specific insurance coverage is necessary for the licensed activities
1. Schedule 1 - Licensed IP: Detailed description of the intellectual property being sub-licensed
2. Schedule 2 - Main License Terms: Relevant excerpts from the main license agreement that affect the sub-license
3. Schedule 3 - Payment Terms: Detailed breakdown of fees, royalties, and payment calculations
4. Schedule 4 - Technical Specifications: Technical requirements and specifications for the licensed IP
5. Schedule 5 - Quality Control Procedures: Detailed quality control requirements and procedures
6. Schedule 6 - Reporting Templates: Templates for required periodic reports
7. Appendix A - Form of Recordal: Template for recording the sub-license with Indonesian authorities
8. Appendix B - Compliance Certificates: Required compliance certifications and forms
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