The Trade Mark Licence Agreement is a crucial document for businesses seeking to expand their brand presence in Indonesia through licensed partnerships. This agreement is essential when a trademark owner wishes to permit another entity to use their registered marks while maintaining control over their brand integrity. The document must conform to Indonesian law, particularly Law No. 20 of 2016 on Marks and Geographical Indications, and requires mandatory recordal with the Indonesian Trademark Office. It is commonly used in franchise arrangements, manufacturing partnerships, and brand expansions, providing a structured framework for commercial exploitation of trademark rights while ensuring proper brand protection. The agreement typically includes comprehensive provisions on quality control, royalty structures, territorial limitations, and compliance with local regulations, making it suitable for both domestic and international licensing arrangements in the Indonesian market.
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1. Parties: Identification of the Licensor and Licensee with complete legal names and addresses
2. Background: Context of the agreement, confirmation of trademark ownership, and general intent of the parties
3. Definitions: Defined terms including Licensed Marks, Territory, Licensed Products, Effective Date, etc.
4. Grant of License: Scope of the license (exclusive/non-exclusive), permitted uses, and territorial restrictions
5. Term and Termination: Duration of the agreement, renewal provisions, and grounds for termination
6. License Fees and Royalties: Financial terms, payment schedules, reporting requirements, and audit rights
7. Quality Control: Standards for use of the mark, approval processes, and quality maintenance requirements
8. Protection of the Licensed Marks: Obligations regarding trademark protection, infringement actions, and cooperation
9. Representations and Warranties: Standard warranties about ownership, right to license, and validity of marks
10. Record of License: Requirements for recording the license with Indonesian IP Office as per regulations
11. Confidentiality: Protection of confidential information exchanged during the agreement
12. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution
1. Sub-licensing Rights: Include when the licensee is permitted to grant sub-licenses to third parties
2. Minimum Performance Requirements: Include when there are specific sales targets or minimum royalty requirements
3. Marketing and Promotion: Include when specific marketing obligations or restrictions apply
4. Non-Competition: Include when the licensee is restricted from competing activities
5. Local Registration Requirements: Include when the licensee needs to register as a registered user in specific territories
6. Technology Transfer: Include when technical knowledge or know-how is being transferred along with the trademark
7. Corporate Social Responsibility: Include when there are specific CSR requirements for the Indonesian market
1. Schedule 1 - Licensed Marks: Detailed list of all licensed trademarks, including registration numbers and classes
2. Schedule 2 - Licensed Products: Comprehensive list of products/services covered by the license
3. Schedule 3 - Territory: Detailed description of geographic territories where license is granted
4. Schedule 4 - Quality Standards: Specific quality control requirements and standards for the Licensed Products
5. Schedule 5 - Brand Guidelines: Detailed guidelines for proper use of the Licensed Marks
6. Schedule 6 - Royalty Calculations: Detailed methodology for calculating royalties and reporting requirements
7. Appendix A - Approval Procedures: Step-by-step procedures for obtaining approval for use of marks
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