Trademark License Agreement Template for Indonesia

A Trademark License Agreement is a legally binding contract that allows you to grant or obtain permission to use registered trademarks in Indonesia. This agreement establishes clear terms for how your trademark can be used while protecting your intellectual property rights under Indonesian law. Whether you're expanding your business through licensing or seeking to use another company's trademark, this document ensures compliance with local regulations and protects both parties' interests.

When do you need this document?

You need a Trademark License Agreement when entering into any arrangement where trademark usage rights are transferred in Indonesia. This includes franchising operations where you're granting franchise rights that include trademark usage, licensing your brand to manufacturers or distributors in the Indonesian market, or entering joint venture arrangements that involve shared trademark usage. International companies expanding into Indonesia often require these agreements when partnering with local businesses to distribute products under their trademark. Additionally, you'll need this document when restructuring business operations that involve transferring trademark usage rights between related companies or subsidiaries operating in Indonesia.

Key legal considerations

Your trademark license agreement must address several critical legal elements to ensure enforceability and protection. Quality control provisions are mandatory under Indonesian law, requiring you to maintain standards that preserve your trademark's reputation and distinctiveness. You must clearly define the scope of the license, including territorial restrictions, duration, exclusivity terms, and specific products or services covered. Payment structures, including royalties, upfront fees, and performance benchmarks, need detailed specification to avoid disputes. The agreement should include termination clauses that protect your interests while complying with Indonesian contract law requirements. Additionally, you must address sub-licensing permissions, as unauthorized sub-licensing can invalidate your trademark rights and create legal complications under Indonesian intellectual property law.

Legal requirements in Indonesia

Indonesian trademark licensing is governed primarily by Law No. 20 of 2016 on Marks and Geographical Indications, which mandates registration of all trademark license agreements with the Directorate General of Intellectual Property within three months of execution. Your agreement must comply with Indonesian Civil Code provisions regarding contract formation and validity, ensuring all parties have legal capacity and the contract terms are lawful. The agreement must be executed in Indonesian language or accompanied by certified Indonesian translations for official registration purposes. You're required to include specific clauses addressing quality control mechanisms, as failure to maintain trademark quality can result in cancellation under Indonesian law. Additionally, your licensing arrangement must comply with Law No. 5 of 1999 on competition law to ensure the agreement doesn't create unfair business practices or monopolistic conditions in the Indonesian market.