Exclusive Software License Agreement Template for Indonesia

The Exclusive Software License Agreement is a critical legal instrument used when a software owner (licensor) wishes to grant exclusive rights to another party (licensee) to use, distribute, or commercialize their software in Indonesia. This agreement type is particularly important in the Indonesian market, where software licensing must comply with local intellectual property laws and technology transfer regulations. The document covers essential elements including license scope, territorial rights, fees, technical support, and compliance with Indonesian regulations such as Law No. 28 of 2014 on Copyright and Law No. 11 of 2008 on Electronic Information and Transactions. It's commonly used for strategic software partnerships, market expansion, or exclusive distribution arrangements where the licensee requires guaranteed market exclusivity.

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

2. Background: Context of the agreement, including confirmation of the licensor's ownership of the software and the licensee's desire to obtain exclusive rights

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Software', 'Documentation', 'Intellectual Property Rights', and 'Territory'

4. Grant of License: Explicit grant of exclusive license, including scope, territory, and confirmation of exclusivity

5. License Restrictions: Specific restrictions on the licensee's use of the software and limitations on sublicensing

6. Delivery and Installation: Terms regarding the delivery of the software, installation requirements, and acceptance testing procedures

7. License Fees: Payment terms, including license fees, payment schedule, and any recurring fees

8. Intellectual Property Rights: Confirmation of ownership rights, protection measures, and handling of improvements or modifications

9. Warranties and Representations: Warranties regarding software ownership, performance, and compliance with laws

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

11. Confidentiality: Obligations regarding the protection of confidential information exchanged under the agreement

12. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination

13. Effects of Termination: Consequences of termination and post-termination obligations

14. Indemnification: Mutual indemnification obligations, particularly for IP infringement claims

15. Limitation of Liability: Limitations on liability and exclusions of certain types of damages

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

17. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment

18. Execution: Signature blocks and execution formalities