Digital License Agreement Template for Indonesia

The Digital License Agreement is essential for businesses operating in Indonesia's growing digital economy. It is specifically designed to facilitate the legal distribution and use of digital products, software, or content while ensuring compliance with Indonesian regulations, particularly the ITE Law (UU ITE) and its implementing regulations. This agreement is typically used when a provider wishes to grant rights to use digital assets while maintaining ownership and controlling usage terms. The document addresses critical elements including license scope, technical requirements, data protection, and support services, while incorporating mandatory Indonesian language requirements and local business practices. It's particularly relevant given Indonesia's increasing focus on digital transformation and the government's emphasis on regulating electronic transactions and digital services.

1. Parties: Identification of the licensor and licensee, including complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the digital product/software, and purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms specific to the digital product

4. License Grant: Specific rights being granted, including scope, territory, and whether exclusive or non-exclusive

5. License Restrictions: Clear limitations on use, prohibited activities, and restrictions on sublicensing or transfer

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

7. License Fees and Payment: Payment terms, fee structure, and payment methods

8. Intellectual Property Rights: Ownership declarations and IP protection measures

9. Technical Requirements: Minimum system requirements and technical specifications for using the licensed product

10. User Obligations: Licensee's responsibilities regarding usage, security, and compliance

11. Support and Maintenance: Terms for technical support, updates, and maintenance services

12. Data Protection and Privacy: Compliance with Indonesian data protection laws and privacy requirements

13. Warranties and Disclaimers: Warranties provided and limitations of liability

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

15. General Provisions: Standard clauses including force majeure, notices, and entire agreement