Non Commercial License Software Template for Indonesia
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What is a Non Commercial License Software?
The Non Commercial License Software agreement is designed for use in Indonesia when organizations or individuals wish to distribute software for non-commercial purposes while maintaining control over their intellectual property rights. This document is particularly relevant in academic, research, or non-profit contexts where software is shared without monetary compensation. The agreement ensures compliance with Indonesian legal requirements, including the Copyright Law (Law No. 28 of 2014) and Electronic Information and Transactions Law (Law No. 11 of 2008). It provides clear guidelines on permitted uses, restrictions on commercial exploitation, and protection mechanisms for the software owner's rights. The document is essential for managing legal risks while facilitating software sharing in non-commercial environments within the Indonesian jurisdiction.
About the Non Commercial License Software
A Non Commercial License Software agreement is a legal document that allows you to distribute your software in Indonesia while maintaining strict control over its commercial use. Under Indonesian Copyright Law (Law No. 28 of 2014), software is protected as a literary work, giving you exclusive rights to determine how it can be used, distributed, and modified.
When do you need this document?
You need this license when distributing software to educational institutions, research organizations, or non-profit entities without charging fees. Universities often require this license when sharing research software with other academic institutions. Open source project maintainers use it to allow free use while preventing commercial exploitation. Government agencies may need it when providing software tools to citizens or other agencies. Student organizations frequently require this license when developing software for educational purposes that they want to share broadly but not commercialize.
Key legal considerations
The license must clearly define what constitutes "non-commercial use" under Indonesian law to prevent disputes. You should include specific restrictions on sublicensing, modification rights, and distribution channels. Warranty disclaimers are crucial to protect yourself from liability, particularly given Indonesia's Consumer Protection Law (Law No. 8 of 1999). The agreement should address intellectual property ownership, ensuring your copyright remains intact while granting limited usage rights. Include termination clauses that allow you to revoke the license if terms are violated. Attribution requirements help maintain recognition of your work while allowing others to benefit from it.
Legal requirements in Indonesia
Under Indonesian Copyright Law (Law No. 28 of 2014), you must clearly establish your ownership rights and the scope of permissions granted. The Electronic Information and Transactions Law (Law No. 11 of 2008) requires that electronic agreements meet specific validity requirements, including clear acceptance mechanisms. The Indonesian Civil Code mandates that contracts contain essential elements including parties' identification, subject matter, and lawful cause. You must ensure the license complies with Government Regulation requirements for electronic documents. The agreement should specify Indonesian jurisdiction for dispute resolution and reference applicable Indonesian laws. Consider including provisions for digital signatures to ensure enforceability under the ITE Law, and ensure all parties are properly identified with complete legal names and addresses as required by Indonesian contract law.
GOVERNING LAW
Applicable law
This Non Commercial License Software is drafted to comply with Indonesia law. Key legislation includes:
Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law): Regulates electronic transactions and digital signatures, which is relevant for software distribution and license acceptance mechanisms
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental principles of contract law in Indonesia, including requirements for valid agreements and contractual obligations
Law No. 8 of 1999 on Consumer Protection: Although this is a non-commercial license, this law may still be relevant for protecting end-users' rights and establishing warranty disclaimers
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Implements the ITE Law and provides detailed requirements for electronic systems and transactions, including software distribution
Law No. 7 of 2014 on Trade: Contains provisions relevant to software distribution and licensing, even in non-commercial contexts
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