License To Use Trademark Template for Indonesia

A License To Use Trademark is a crucial legal document that allows you to grant or obtain permission to use registered trademarks in Indonesia. This agreement creates a formal relationship between the trademark owner (licensor) and the authorized user (licensee), establishing clear terms for how the trademark can be used while protecting the intellectual property rights of the owner.

When do you need this document?

You need a trademark licensing agreement when expanding your brand into Indonesia through local partners, establishing franchise operations, or manufacturing products under license. International companies frequently use these agreements when entering the Indonesian market through local distributors or subsidiaries who will use the foreign trademark locally. The document is also essential when granting manufacturing rights to Indonesian companies who will produce goods bearing your trademark, or when allowing distribution companies to market and sell products under your brand name in specific territories within Indonesia.

Key legal considerations

Quality control provisions are mandatory under Indonesian law and must specify how the licensor will maintain oversight of products or services bearing the trademark. The agreement must clearly define the scope of use, including territorial limitations, product categories, and duration of the license. Payment terms should detail royalty rates, minimum payments, and reporting requirements to ensure compliance with Indonesian tax and foreign exchange regulations. Termination clauses must address what happens to existing inventory and ongoing obligations when the license ends. The agreement should also include provisions for trademark enforcement and protection against infringement, as well as requirements for the licensee to assist in maintaining trademark registrations in Indonesia.

Legal requirements in Indonesia

Under Law No. 20 of 2016 on Trademarks and Geographical Indications, trademark licensing agreements must be recorded with the Ministry of Law and Human Rights to be legally effective against third parties. The agreement must be drafted in Indonesian or accompanied by a certified translation, and registration fees must be paid within specific timeframes. Government Regulation No. 36 of 2018 requires detailed documentation including proof of trademark ownership and corporate authorization letters. The licensing agreement must comply with Law No. 5 of 1999 (Anti-Monopoly Law) by avoiding anti-competitive provisions such as exclusive dealing arrangements that could create market monopolies. Additionally, the agreement must align with Indonesian contract law principles under the Civil Code, ensuring proper formation, consideration, and enforceability of all contractual terms.