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Trademark License Agreement Template for Indonesia

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Key Requirements PROMPT example:

Trademark License Agreement

I need a trademark license agreement that allows a local business to use our trademark for a period of 2 years, with an option to renew. The agreement should include provisions for quality control, royalty payments on a quarterly basis, and termination clauses for breach of contract.

What is a Trademark License Agreement?

A Trademark License Agreement lets trademark owners give others permission to use their protected brand assets legally. Under Indonesian Trademark Law No. 20 of 2016, these contracts spell out exactly how licensed parties can use names, logos, and other registered marks while protecting the owner's intellectual property rights.

The agreement sets clear rules about payment terms, quality standards, and geographic limits for using the trademark. In Indonesia, these licenses must be registered with the Directorate General of Intellectual Property to be legally binding and enforceable. This helps local businesses expand through franchising and brand partnerships while maintaining control over their valuable trademark rights.

When should you use a Trademark License Agreement?

You need a Trademark License Agreement when expanding your business through franchising, partnerships, or brand collaborations in Indonesia. This agreement becomes essential before letting others use your company's name, logo, or distinctive marks in their operations - especially common in retail, food service, and consumer goods sectors.

Indonesian law requires registering these agreements with the Directorate General of Intellectual Property. Getting this in place early protects your brand value and prevents unauthorized use. It's particularly important when entering joint ventures, launching merchandise lines, or allowing distributors to use your trademarks across different regions within Indonesia.

What are the different types of Trademark License Agreement?

  • Exclusive License: Grants one licensee sole rights to use the trademark in a specific territory or industry across Indonesia, common in major franchise deals
  • Non-exclusive License: Allows multiple parties to use the trademark simultaneously, popular among merchandise manufacturers and retailers
  • Regional License: Restricts trademark use to specific Indonesian provinces or territories, often used by local distributors
  • Quality-Control License: Emphasizes strict product quality standards and monitoring, typical in food and beverage franchising
  • Master License: Gives the licensee rights to sub-license the trademark to others, common in nationwide franchise networks

Who should typically use a Trademark License Agreement?

  • Trademark Owners: Companies or individuals who have registered their marks in Indonesia and want to license them for profit while maintaining control
  • Legal Counsel: Indonesian intellectual property lawyers who draft and review agreements to ensure compliance with local trademark laws
  • Licensees: Businesses seeking rights to use established trademarks, often franchisees or distributors operating in specific regions
  • IP Rights Officers: Corporate representatives who manage trademark portfolios and monitor license compliance
  • Government Officials: Staff at the Directorate General of Intellectual Property who process and register these agreements

How do you write a Trademark License Agreement?

  • Trademark Details: Gather registration numbers, classes, and current usage scope from Indonesian IP records
  • License Scope: Define territory limits, permitted uses, and duration of the trademark rights
  • Quality Standards: Document specific requirements for maintaining brand integrity and product consistency
  • Financial Terms: Outline royalty rates, payment schedules, and reporting requirements
  • Registration Plan: Prepare documentation for mandatory registration with the Directorate General of IP
  • Compliance Check: Verify alignment with Indonesian Trademark Law No. 20/2016 requirements

What should be included in a Trademark License Agreement?

  • Party Details: Full legal names, addresses, and registration numbers of licensor and licensee
  • Trademark Description: Registration numbers, classes, and visual representations of licensed marks
  • License Scope: Exclusive/non-exclusive rights, territory limits, and permitted usage terms
  • Quality Control: Standards, inspection rights, and compliance requirements
  • Financial Terms: Royalty rates, payment schedules, and reporting obligations
  • Term and Termination: Duration, renewal options, and grounds for early termination
  • Governing Law: Reference to Indonesian Trademark Law and dispute reֱ procedures

What's the difference between a Trademark License Agreement and a Copyright License Agreement?

A Trademark License Agreement differs significantly from a Copyright License Agreement in several key aspects under Indonesian law. While both protect intellectual property rights, they serve distinct purposes and cover different types of assets.

  • Protected Assets: Trademark licenses cover brand identifiers like logos and names, while copyright licenses protect creative works like books, music, or software
  • Registration Requirements: Trademark licenses must be registered with Indonesia's IP Office, but copyright licenses don't require official registration
  • Quality Control: Trademark licenses typically include strict quality monitoring provisions to maintain brand consistency, which isn't usually necessary in copyright licenses
  • Duration and Renewal: Trademark licenses often align with trademark registration periods and renewal cycles, while copyright licenses can extend through the entire copyright term
  • Territory Scope: Trademark licenses commonly specify geographic boundaries within Indonesia, whereas copyright licenses usually focus on usage rights regardless of location

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