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Customer License Agreement for Indonesia

Customer License Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions under which a software provider licenses their software products to customers. This document incorporates requirements from Indonesia's Electronic Information and Transactions Law (ITE Law), Consumer Protection Law, and Personal Data Protection Law. It details the scope of the license grant, usage rights, restrictions, payment terms, intellectual property rights, warranties, and support services while ensuring compliance with local regulatory requirements for electronic transactions and consumer protection.

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Customer License Agreement

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What is a Customer License Agreement?

The Customer License Agreement serves as the primary legal framework for software licensing transactions in Indonesia, establishing the rights, obligations, and restrictions between software providers and their customers. This document is essential for any business providing software products or services in Indonesia, whether through traditional licensing or SaaS models. It must comply with key Indonesian regulations including Law No. 11 of 2008 on Electronic Information and Transactions, Law No. 8 of 1999 on Consumer Protection, and Law No. 27 of 2022 on Personal Data Protection. The agreement covers critical aspects such as license scope, usage rights, fees, support services, warranties, and liability limitations, while incorporating mandatory consumer protection provisions required under Indonesian law.

What sections should be included in a Customer License Agreement?

1. Parties: Identification of the licensor and licensee, including registered addresses and company details

2. Background: Context of the agreement and brief description of the licensed product/software

3. Definitions: Key terms used throughout the agreement, including technical and legal definitions

4. License Grant: Scope of the license, including usage rights, restrictions, and territory limitations

5. License Fees and Payment: Payment terms, fee structure, and payment methods

6. User Obligations: Customer's responsibilities, acceptable use policy, and usage restrictions

7. Intellectual Property Rights: Declaration of IP ownership and protection measures

8. Data Protection and Privacy: Compliance with Indonesian data protection laws and privacy requirements

9. Term and Termination: Duration of the license, renewal terms, and termination conditions

10. Support and Maintenance: Level of technical support and maintenance services provided

11. Warranties and Disclaimers: Product warranties and limitations as per Indonesian consumer law

12. Limitation of Liability: Extent and limitations of liability under Indonesian law

13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures

14. General Provisions: Standard legal provisions including notices, assignment, and severability

What sections are optional to include in a Customer License Agreement?

1. Third-Party Software: Include when the licensed software incorporates third-party components

2. Service Level Agreement: Include for software-as-a-service (SaaS) products

3. Export Controls: Include when software may be subject to international export restrictions

4. Insurance: Include when dealing with enterprise customers or high-risk applications

5. Source Code Escrow: Include for enterprise licenses where source code access may be required

6. Professional Services: Include when additional implementation or training services are provided

7. Beta Testing: Include when providing pre-release or beta version access

What schedules should be included in a Customer License Agreement?

1. Schedule 1 - Licensed Software Description: Detailed description of the licensed software and its components

2. Schedule 2 - Fee Schedule: Detailed breakdown of license fees, payment terms, and pricing tiers

3. Schedule 3 - Service Level Requirements: Technical specifications and performance requirements

4. Schedule 4 - Support Services: Detailed description of support and maintenance services

5. Schedule 5 - Data Processing Terms: Detailed data processing and privacy requirements

6. Appendix A - Acceptable Use Policy: Detailed rules and restrictions for software usage

7. Appendix B - Technical Requirements: Minimum system requirements and technical specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions




















































Clauses




































Relevant Industries

Technology

Software Development

E-commerce

Financial Services

Healthcare

Education

Manufacturing

Professional Services

Telecommunications

Gaming and Entertainment

Retail

Cloud Services

Relevant Teams

Legal

Sales

Information Technology

Product Development

Compliance

Customer Success

Business Development

Account Management

Software Development

Risk Management

Commercial Operations

Relevant Roles

Legal Counsel

Chief Legal Officer

Software Licensing Manager

Commercial Director

Chief Technology Officer

Product Manager

Sales Director

Compliance Officer

Data Protection Officer

IT Director

Contract Manager

Business Development Manager

Customer Success Manager

Account Executive

Software Development Manager

Industries







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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