Trade Mark Licence Agreement Template for Indonesia

A Trade Mark Licence Agreement is a legally binding contract that allows you to grant or obtain permission to use registered trademarks in Indonesia. Under Indonesian law, specifically Law No. 20 of 2016 on Marks and Geographical Indications, this document creates a formal licensing relationship between trademark owners and authorized users while ensuring proper brand protection and regulatory compliance.

When do you need this document?

You need a Trade Mark Licence Agreement when expanding your business through brand licensing arrangements in Indonesia. This includes franchise operations where you're granting trademark usage rights to local franchisees, manufacturing partnerships where Indonesian companies will produce goods bearing your trademarks, or distribution agreements involving branded products. International companies entering the Indonesian market often use these agreements to work with local partners while maintaining brand control. You also need this document when acquiring licensing rights from foreign trademark owners to use their brands in Indonesian commerce, ensuring legal protection for both parties in the commercial relationship.

Key legal considerations

Your agreement must include comprehensive quality control provisions to maintain trademark validity, as Indonesian law requires licensors to supervise the quality of goods and services using their marks. Royalty and payment structures should comply with Indonesian tax regulations and foreign exchange laws. Territorial restrictions must be clearly defined, specifying whether the license covers all of Indonesia or specific regions. The agreement should address trademark infringement procedures and enforcement responsibilities. Duration and termination clauses must align with business objectives while providing adequate notice periods. You must also consider anti-competition compliance under Law No. 5 of 1999, ensuring licensing terms don't create unfair business practices or monopolistic conditions in the Indonesian market.

Legal requirements in Indonesia

Under Indonesian trademark law, your licence agreement must be recorded with the Directorate General of Intellectual Property Rights within three months of signing to ensure legal validity and enforceability. The agreement must be executed in Indonesian language or accompanied by certified translations. All parties must provide complete legal identification, including corporate documents for business entities. Foreign licensors may need to appoint local Indonesian representatives for legal proceedings. The document must comply with Indonesian Civil Code principles regarding contract formation and validity. Government Regulation No. 36 of 2018 provides specific implementation guidelines for trademark licensing procedures. You must also ensure compliance with Indonesian investment regulations if the licensing arrangement involves foreign direct investment or technology transfer components that require additional approvals from relevant ministries.