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The Patent License Agreement serves as a crucial legal instrument in Indonesia's intellectual property landscape, enabling patent owners to commercialize their innovations while maintaining control over their intellectual property rights. This document is essential when a party wishes to grant another entity the right to use, manufacture, or sell products incorporating their patented technology. Governed by Indonesian law, particularly Law No. 13 of 2016 on Patents, the agreement must be registered with the Directorate General of Intellectual Property to be enforceable against third parties. It typically includes detailed provisions on technical specifications, quality standards, royalty calculations, and territorial restrictions, while ensuring compliance with Indonesian competition law and investment regulations. The agreement is particularly valuable for technology transfer arrangements, cross-border licensing, and domestic innovation partnerships.
