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White Label Agreement
I need a white label agreement that allows my company to rebrand and sell a third-party software product under our own brand name in Indonesia. The agreement should include terms on intellectual property rights, confidentiality, and a clause for technical support and updates from the original developer.
What is a White Label Agreement?
A White Label Agreement lets one company sell another company's product or service under their own brand name in Indonesia. It's like when a local supermarket puts its own label on products actually made by other manufacturers - but with proper legal protection and clear terms for both sides.
These agreements must comply with Indonesian trademark laws and consumer protection regulations, especially Law No. 20 of 2016 on Marks and Geographical Indications. They spell out important details like quality standards, pricing rules, and how the branded company can use the manufacturer's intellectual property while maintaining confidentiality. Many Indonesian businesses use these agreements to quickly expand their product lines without investing in new manufacturing capabilities.
When should you use a White Label Agreement?
Consider a White Label Agreement when you want to expand your product line quickly without developing new items from scratch. This is especially valuable for Indonesian businesses entering competitive markets or testing new segments without heavy investment in manufacturing or development.
The timing is right when you've found a reliable manufacturer with proven quality standards, and you need a formal framework to protect both parties. Indonesian companies often use these agreements when launching private-label products, entering e-commerce marketplaces, or offering financial services through established platforms. Just make sure your agreement aligns with Law No. 20 of 2016 on Marks and Indonesia's consumer protection regulations.
What are the different types of White Label Agreement?
- White Label License Agreement: Focuses on intellectual property rights and licensing terms when one company allows another to rebrand and sell their software or digital products under their own name
- White Label Service Agreement: Used for ongoing service relationships, like when Indonesian fintech companies provide backend processing for other brands' financial services
- White Label Reseller Agreement: Specifically designed for businesses that want to purchase, rebrand, and resell physical products through their own distribution channels
Who should typically use a White Label Agreement?
- Manufacturers/Service Providers: Create and supply the actual products or services, typically larger Indonesian companies with established production capabilities or tech firms with scalable platforms
- Brand Owners: Purchase and rebrand these products/services under their own name, often medium-sized businesses looking to expand their market presence
- Legal Teams: Draft and review White Label Agreements to ensure compliance with Indonesian regulations, particularly regarding intellectual property and consumer protection
- Quality Control Officers: Monitor product standards and ensure compliance with agreed specifications
- Distributors: Handle the logistics and delivery of white-labeled products to end customers while maintaining brand consistency
How do you write a White Label Agreement?
- Basic Details: Gather complete legal names, addresses, and registration numbers of all parties involved in the white labeling arrangement
- Product Specifications: Document detailed product descriptions, quality standards, and technical requirements that meet Indonesian consumer protection standards
- Branding Guidelines: Outline approved usage of trademarks, logos, and marketing materials under Law No. 20 of 2016
- Financial Terms: Define pricing structure, payment terms, and revenue sharing arrangements in Indonesian Rupiah
- Quality Control: Specify inspection procedures, acceptance criteria, and remedies for non-compliance
- Platform Support: Use our automated system to generate a comprehensive White Label Agreement that includes all required elements under Indonesian law
What should be included in a White Label Agreement?
- Party Details: Full legal names, addresses, and registration numbers of both manufacturer and brand owner per Indonesian Company Law
- Product Scope: Detailed description of goods/services, quality standards, and technical specifications
- IP Rights: Clear terms for trademark usage and licensing under Law No. 20 of 2016
- Confidentiality: Provisions protecting trade secrets and proprietary information
- Quality Control: Inspection procedures and compliance with SNI standards
- Territory Rights: Defined geographical areas for distribution within Indonesia
- Termination Terms: Clear conditions for ending the agreement and post-termination obligations
- Dispute Resolution: Choice of Indonesian law and preferred dispute settlement method
What's the difference between a White Label Agreement and an Agency Agreement?
A White Label Agreement differs significantly from an Agency Agreement in several key aspects, though both involve business relationships where one party represents another's interests. Here's what sets them apart:
- Branding Control: White Label Agreements allow complete rebranding under the buyer's identity, while Agency Agreements require the agent to represent the principal's existing brand
- Product Ownership: In white labeling, the buyer owns the customer relationship and final branded product; agencies merely facilitate sales of the principal's branded offerings
- Legal Liability: White label buyers assume primary responsibility for customer relations and product compliance under Indonesian consumer law, whereas agents typically act on behalf of their principal
- Revenue Structure: White label deals usually involve wholesale purchasing and independent pricing, while agency relationships typically operate on commission-based models
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