Software Licence Agreement for Indonesia

Software Licence Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which software is licensed from a provider to a user or organization. The document encompasses key elements required under Indonesian regulations, including compliance with the Copyright Law (UU No. 28/2014) and Electronic Information and Transactions Law (UU No. 11/2008). It details the scope of the license, usage rights, intellectual property protections, payment terms, warranties, and obligations of both parties while ensuring alignment with local data protection and consumer protection requirements.

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What is a Software Licence Agreement?

The Software License Agreement serves as a critical legal instrument for software providers operating in Indonesia to grant usage rights while protecting their intellectual property. This document is essential when a software provider wishes to license their software products to users or organizations while maintaining ownership rights. The agreement must comply with Indonesian legal requirements, particularly the Copyright Law and Electronic Information and Transactions Law, while addressing key commercial terms such as license scope, fees, and usage restrictions. It is commonly used for both off-the-shelf software products and customized solutions, requiring careful consideration of data protection regulations, consumer protection laws, and electronic transaction requirements specific to Indonesia. The document becomes particularly important in the context of Indonesia's growing digital economy and increasing focus on technology adoption across various sectors.

What sections should be included in a Software Licence Agreement?

1. Parties: Identification of the licensor and licensee with complete legal details

2. Background: Context of the agreement, brief description of the software, and purpose of the license

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Grant of License: Scope and nature of the license granted, including usage rights and restrictions

5. License Fees and Payment Terms: Details of licensing fees, payment schedule, and payment methods

6. Intellectual Property Rights: Declaration of ownership and IP rights related to the software

7. Confidentiality: Obligations regarding confidential information and trade secrets

8. Warranties and Representations: Warranties provided for the software and representations by both parties

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

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Post-Termination Obligations: Actions required after agreement termination

12. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

What sections are optional to include in a Software Licence Agreement?

1. Professional Services: Terms for additional services such as implementation, training, or customization

2. Service Level Agreement: Performance standards and support levels for hosted software

3. Data Protection and Privacy: Specific terms for handling personal data, required if software processes user data

4. Source Code Escrow: Terms for source code escrow arrangements, relevant for business-critical software

5. Export Control: Compliance with export regulations, needed for international licensing

6. Maintenance and Support: Terms for ongoing maintenance and technical support services

7. User Restrictions: Specific limitations on number of users or usage metrics

8. Assignment and Sublicensing: Terms for transferring or sublicensing rights

What schedules should be included in a Software Licence Agreement?

1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the software

2. Schedule 2 - License Fees: Detailed breakdown of license fees and payment structure

3. Schedule 3 - Service Level Parameters: Technical performance metrics and service levels

4. Schedule 4 - Support and Maintenance Services: Detailed description of support and maintenance offerings

5. Schedule 5 - Data Processing Terms: Specific terms for data processing and privacy compliance

6. Appendix A - Acceptable Use Policy: Guidelines and restrictions for software usage

7. Appendix B - Technical Requirements: Hardware and software requirements for operating the software

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Professional Services

Telecommunications

Retail

Government and Public Sector

Banking

Insurance

Logistics and Supply Chain

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Vendor Management

Software Asset Management

Information Security

Operations

Business Development

Contract Administration

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software License Manager

Compliance Officer

Chief Information Officer

Contract Manager

IT Security Manager

Software Asset Manager

Business Development Manager

Technology Procurement Specialist

Legal Operations Manager

Risk Manager

Vendor Management Officer

Industries
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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