A Trademark License Agreement Between Parent And Subsidiary is essential when a parent company wishes to formally authorize its subsidiary to use its trademarks in Indonesia while maintaining proper control and protection of its intellectual property rights. This document is particularly important in the Indonesian context due to specific local requirements for trademark licensing, including mandatory registration with the Directorate General of Intellectual Property. The agreement should be used when establishing new subsidiary operations, restructuring existing arrangements, or formalizing informal trademark usage within a corporate group. It addresses key aspects such as quality control, usage parameters, regulatory compliance, and intra-group transaction considerations. The document needs to balance the parent company's need to protect its intellectual property with the practical requirements of the subsidiary's operations, while ensuring compliance with Indonesian trademark law, corporate law, and transfer pricing regulations.
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1. Parties: Identification of the parent company as licensor and subsidiary as licensee, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, establishing the parent-subsidiary relationship, trademark ownership, and business purpose of the license
3. Definitions: Definitions of key terms including Licensed Marks, Territory, Licensed Products, and other relevant terms
4. Grant of License: Scope of the trademark license, including territory, exclusivity, and any restrictions on use
5. Term and Renewal: Duration of the license agreement and conditions for renewal
6. Quality Control: Parent company's right to monitor and control quality of products/services using the Licensed Marks
7. Usage Guidelines: Specific requirements for how the trademarks must be used, including format, placement, and brand guidelines
8. Regulatory Compliance: Obligations regarding trademark registration and recording of the license agreement with Indonesian authorities
9. Royalties and Payment: Financial terms, even if nominal, to maintain arm's length principles
10. Maintenance and Protection: Responsibilities for maintaining and protecting the trademarks
11. Termination: Circumstances under which the agreement can be terminated and consequences of termination
12. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices
1. Sub-licensing Rights: Include when the subsidiary needs the right to grant sub-licenses to third parties
2. Sales and Marketing Requirements: Include when specific marketing or sales obligations need to be imposed on the subsidiary
3. Group Companies Provision: Include when other group companies need rights to use the trademarks
4. Technology Transfer: Include when associated technical knowledge or know-how is being transferred along with the trademark license
5. Export Restrictions: Include when there are specific territorial restrictions or export controls
6. Local Language Requirements: Include when Indonesian language version is required by law or practice
1. Schedule 1 - Licensed Marks: Details and representations of all trademarks covered by the agreement, including registration numbers
2. Schedule 2 - Licensed Products/Services: Comprehensive list of products or services for which the trademarks may be used
3. Schedule 3 - Brand Guidelines: Detailed specifications for trademark usage, including color schemes, positioning, and size requirements
4. Schedule 4 - Quality Control Procedures: Specific procedures and standards for maintaining quality control
5. Schedule 5 - Royalty Calculation: Method for calculating royalties if applicable, including transfer pricing considerations
6. Appendix A - Form of Quarterly Report: Template for required periodic reports on trademark usage and compliance
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