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Non Competition Agreement Between Companies

Non Competition Agreement Between Companies Template for Indonesia

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Key Requirements PROMPT example:

Non Competition Agreement Between Companies

"I need a Non Competition Agreement Between Companies to restrict a software development company from competing with our business in Java and Sumatra regions for 3 years starting January 2025, following their work as our technology implementation partner."

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Document background
The Non Competition Agreement Between Companies is a crucial legal instrument in Indonesian business practice, typically used when companies enter into business relationships involving sensitive commercial information or market positions. This document is essential in scenarios such as joint ventures, mergers and acquisitions, strategic partnerships, or when one company gains significant insight into another's business operations. The agreement must carefully balance business protection needs with compliance requirements under Indonesian law, particularly Law No. 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition. It should specify restricted activities, geographical limitations, duration, and enforcement mechanisms while ensuring all provisions are enforceable under Indonesian jurisdiction.
Suggested Sections

1. Parties: Identifies the companies entering into the agreement, including their full legal names, registration numbers, and registered addresses

2. Background: Sets out the context and purpose of the agreement, including the nature of the business relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'Competitive Activities', 'Restricted Territory', 'Confidential Information'

4. Scope of Non-Competition: Details the specific activities, services, or businesses that are restricted under the agreement

5. Duration: Specifies the time period during which the non-competition obligations will remain in effect

6. Geographic Scope: Defines the territorial boundaries within which the non-competition restrictions apply

7. Consideration: States the consideration or benefit provided in exchange for the non-competition obligations

8. Exceptions and Permitted Activities: Lists specific activities or circumstances that are exempted from the non-competition restrictions

9. Confidentiality Obligations: Outlines the duties to maintain confidentiality of sensitive information exchanged

10. Remedies for Breach: Specifies the consequences and available remedies in case of violation

11. Governing Law and Jurisdiction: Confirms Indonesian law as governing law and specifies jurisdiction for dispute resolution

12. General Provisions: Standard contractual provisions including notices, amendments, and severability

Optional Sections

1. Related Company Provisions: Additional provisions covering subsidiaries, affiliates, or group companies - used when parties are part of larger corporate groups

2. Special Industry Regulations: Specific provisions addressing industry-specific regulations - used for regulated industries like financial services or telecommunications

3. Post-Term Obligations: Provisions that survive the termination of the agreement - used when certain obligations need to continue beyond the main term

4. Assignment and Transfer: Provisions regarding the ability to transfer rights under the agreement - used when parties anticipate potential corporate restructuring

5. Force Majeure: Provisions for unforeseen circumstances preventing performance - used in longer-term agreements

6. Anti-Corruption Compliance: Specific provisions ensuring compliance with anti-corruption laws - used when dealing with government contracts or regulated industries

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific business activities, products, or services that are restricted under the agreement

2. Schedule 2 - Restricted Territory: Detailed maps or descriptions of the geographical areas where restrictions apply

3. Schedule 3 - Affiliated Companies: List of related companies, subsidiaries, or affiliates covered by the agreement

4. Schedule 4 - Existing Commitments: List of pre-existing business commitments or contracts that are excluded from restrictions

5. Appendix A - Compliance Requirements: Specific compliance requirements under Indonesian competition law

6. Appendix B - Industry-Specific Requirements: Any specific requirements or restrictions particular to the relevant industry sector

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Affiliate
Agreement
Business Day
Competitive Activities
Confidential Information
Control
Effective Date
Group
Intellectual Property Rights
Material Breach
Non-Compete Period
Permitted Activities
Prohibited Activities
Related Party
Restricted Business
Restricted Customers
Restricted Period
Restricted Territory
Services
Subsidiary
Term
Territory
Trade Secrets
Associated Company
Business
Commercial Information
Competing Business
Corporate Group
Governing Law
Market Share
Products
Proprietary Information
Relevant Market
Representatives
Restricted Companies
Restricted Industry
Strategic Information
Technical Information
Third Party
Working Hours
Relevant Industries

Technology and Software

Manufacturing

Financial Services

Professional Services

Healthcare and Pharmaceuticals

Retail and Consumer Goods

Energy and Resources

Telecommunications

Industrial Services

E-commerce

Research and Development

Consulting Services

Relevant Teams

Legal

Corporate Strategy

Business Development

Executive Leadership

Mergers & Acquisitions

Commercial

Compliance

Risk Management

Corporate Governance

Operations

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Business Development Director

Corporate Strategy Manager

Mergers & Acquisitions Director

Commercial Director

Chief Operating Officer

Head of Legal

Compliance Officer

Contract Manager

Legal Counsel

Corporate Secretary

Risk Manager

Partnership Manager

Industries
Law No. 5 of 1999 (Competition Law): Indonesia's primary antitrust legislation that prohibits monopolistic practices and unfair business competition. Any non-compete agreement must not violate the provisions of this law regarding market dominance and business competition.
Indonesian Civil Code (KUHPerdata): Governs contract law and legal relationships between parties. Articles 1320 and 1338 are particularly relevant for contract validity and the principle of freedom of contract.
Law No. 40 of 2007: The Company Law that governs corporate entities in Indonesia, including their rights to enter into agreements and corporate governance requirements.
Government Regulation No. 57/2010: Regulation on mergers, consolidations, and acquisitions that may be relevant if the non-compete agreement is part of a larger business transaction.
Law No. 24 of 2019: The Creative Economy Law that may be relevant if the non-compete agreement involves intellectual property or creative industry sectors.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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