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Software License Agreement

Software License Agreement Template for Indonesia

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Key Requirements PROMPT example:

Software License Agreement

"I need a Software License Agreement for my AI-powered healthcare software that will be licensed to Indonesian hospitals, including provisions for patient data protection and compliance with local healthcare regulations, with the initial term starting January 2025."

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Document background
The Software License Agreement serves as a crucial legal instrument in Indonesia's growing technology sector, establishing the framework for software distribution and usage rights. This document is essential when a software owner wishes to grant usage rights while retaining ownership of the intellectual property. The agreement must comply with Indonesian regulations, particularly Law No. 28 of 2014 on Copyright and Law No. 11 of 2008 on Electronic Information and Transactions. It covers critical aspects such as license scope, usage restrictions, fees, maintenance terms, and data protection requirements. The Software License Agreement is particularly important in the Indonesian market where software deployment must address local regulatory requirements, including data localization and electronic system registration obligations.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including their legal status and registered addresses

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

3. Definitions: Detailed definitions of key terms used throughout the agreement, including Software, Documentation, Intellectual Property Rights, etc.

4. Grant of License: Scope of the license, including type (exclusive/non-exclusive), territory, and permitted uses

5. License Fees and Payment Terms: Payment obligations, fee structure, payment schedule, and consequences of non-payment

6. Intellectual Property Rights: Confirmation of ownership rights, protection of IP, and restrictions on use

7. Licensee Obligations: Key responsibilities of the licensee including authorized use, security measures, and usage restrictions

8. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

9. Warranties and Representations: Standard warranties regarding software ownership, performance, and compliance with laws

10. Limitation of Liability: Caps on liability and exclusions of certain types of damages

11. Confidentiality: Protection of confidential information exchanged during the license period

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

Optional Sections

1. Software Maintenance and Support: Terms for ongoing maintenance, updates, and technical support - include when support services are part of the agreement

2. Data Protection and Privacy: Specific provisions for handling personal data - required when the software processes user data

3. Third-Party Software: Terms relating to third-party components - include when the software incorporates third-party elements

4. Export Controls: Compliance with export regulations - needed for international licensing

5. Source Code Escrow: Terms for source code protection - relevant for mission-critical software

6. Service Level Agreement: Performance standards and metrics - include for cloud-based or SaaS solutions

7. Training and Implementation: Terms for training and deployment services - include when these services are offered

8. Audit Rights: Rights to audit usage and compliance - important for high-value licenses

Suggested Schedules

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

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

3. Schedule 3 - Technical Requirements: Minimum system requirements and technical specifications for software operation

4. Schedule 4 - Support Services: Detailed description of support services, response times, and service levels

5. Schedule 5 - Authorized Users: Definition and list of authorized users or user categories

6. Appendix A - Security Requirements: Specific security measures and protocols required for software use

7. Appendix B - Data Processing Terms: Detailed terms for personal data processing in compliance with Indonesian data protection laws

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
Authorized Users
Business Day
Confidential Information
Documentation
Effective Date
End User
Force Majeure
Initial Term
Intellectual Property Rights
License Fee
License Key
Licensed Software
Maintenance Services
Modifications
Open Source Software
Permitted Purpose
Personal Data
Security Requirements
Services
Software
Source Code
Specifications
Support Services
System Requirements
Technical Requirements
Term
Territory
Third-Party Software
Updates
Upgrades
User Manual
Warranty Period
Work Product
Clauses
Grant of License
License Restrictions
Intellectual Property Rights
License Fees
Payment Terms
Delivery and Installation
Technical Requirements
Acceptance Testing
Warranties
Support and Maintenance
Service Levels
Confidentiality
Data Protection
Security Requirements
Audit Rights
Term and Duration
Termination
Force Majeure
Assignment
Liability Limitation
Indemnification
Insurance
Dispute Resolution
Governing Law
Export Control
Anti-Corruption
Notice
Amendment
Severability
Entire Agreement
Third Party Rights
Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Professional Services

Government and Public Sector

Retail

Entertainment and Media

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Software Development

Information Security

Risk Management

Vendor Management

Contract Administration

Business Development

Product Management

Relevant Roles

Chief Technology Officer

Legal Counsel

Software Development Manager

IT Director

Procurement Manager

Compliance Officer

Contract Manager

Information Security Officer

Software Licensing Specialist

Technology Risk Manager

Business Development Manager

Product Manager

Chief Information Officer

Enterprise Architect

Vendor Management Specialist

Industries
Law No. 28 of 2014 on Copyright: The primary legislation governing copyright protection in Indonesia, which explicitly includes computer programs (software) as protected works. This law is crucial for establishing the licensor's rights and the scope of the license.
Law No. 11 of 2008 on Electronic Information and Transactions (ITE Law): Regulates electronic transactions and digital signatures in Indonesia. Relevant for software licensing agreements conducted electronically and ensuring their validity.
Law No. 8 of 1999 on Consumer Protection: Provides protection for consumers in Indonesia. Applicable when the software license agreement is B2C, covering aspects such as warranty, product quality, and fair contract terms.
Indonesian Civil Code (KUHPerdata): Contains general contract law principles applicable to all agreements in Indonesia, including requirements for valid contracts, performance obligations, and breach of contract provisions.
Government Regulation No. 71 of 2019 on Electronic Systems and Transactions: Implementing regulation for the ITE Law, providing detailed requirements for electronic transactions and systems, including software distribution and licensing.
Law No. 27 of 2022 on Personal Data Protection: Regulates the protection of personal data in Indonesia. Relevant when the licensed software involves collection, processing, or storage of personal data.
Minister of Communication and Information Technology Regulation No. 20 of 2016: Provides specific guidelines on personal data protection in electronic systems, important for software that processes personal data.
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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