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Proprietary Rights Agreement for Indonesia

Proprietary Rights Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes and protects proprietary rights between parties. It covers the ownership, transfer, and protection of intellectual property rights, trade secrets, and confidential information. The agreement is structured to comply with Indonesian intellectual property laws, including Law No. 13 of 2016 on Patents, Law No. 28 of 2014 on Copyright, and Law No. 30 of 2000 on Trade Secrets, while providing mechanisms for enforcement and dispute resolution under Indonesian jurisdiction.

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What is a Proprietary Rights Agreement?

The Proprietary Rights Agreement serves as a crucial legal instrument in Indonesian business operations where intellectual property protection is essential. This document is typically used when companies need to secure their intellectual property rights, protect confidential information, or establish clear ownership of created works. It's particularly relevant in employment relationships, contractor engagements, or business partnerships where intellectual property is being created or shared. The agreement must comply with Indonesian intellectual property laws and regulations, including patent law, copyright law, and trade secret protection. It includes comprehensive provisions for ownership assignment, confidentiality obligations, usage rights, and enforcement mechanisms, all structured within the Indonesian legal framework.

What sections should be included in a Proprietary Rights Agreement?

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration numbers for companies

2. Background: Context of the agreement, relationship between parties, and purpose of the proprietary rights transfer or protection

3. Definitions: Detailed definitions of key terms including Intellectual Property, Confidential Information, Proprietary Rights, and other relevant terms

4. Scope of Proprietary Rights: Comprehensive description of all intellectual property and proprietary rights covered by the agreement

5. Ownership and Assignment: Clear statement of ownership rights and terms of assignment or transfer of proprietary rights

6. Protection of Rights: Obligations regarding protection and maintenance of proprietary rights, including registration and renewal requirements

7. Confidentiality Obligations: Detailed provisions regarding confidentiality, including handling and protection of confidential information

8. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of employees or customers

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Representations and Warranties: Statements and guarantees made by each party regarding their rights and authority

11. Indemnification: Provisions for compensation in case of breach or third-party claims

12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

13. General Provisions: Standard clauses including notices, amendments, severability, and entire agreement

What sections are optional to include in a Proprietary Rights Agreement?

1. Third Party Rights: Include when there are existing licenses or rights granted to third parties that need to be addressed

2. International Protection: Add when proprietary rights need protection in multiple jurisdictions

3. Revenue Sharing: Include when there are arrangements for sharing revenue from proprietary rights exploitation

4. Development Rights: Add when future development or improvement of proprietary rights needs to be addressed

5. Technology Transfer: Include when specific technical knowledge or know-how needs to be transferred

6. Training and Support: Add when ongoing training or technical support is part of the agreement

7. Quality Control: Include when usage of proprietary rights must meet specific quality standards

8. Moral Rights: Add for agreements involving copyrighted works where moral rights need specific attention

What schedules should be included in a Proprietary Rights Agreement?

1. Schedule 1: List of Proprietary Rights: Detailed inventory of all intellectual property and proprietary rights covered by the agreement

2. Schedule 2: Assignment Procedures: Specific procedures and requirements for executing the assignment of rights

3. Schedule 3: Existing Third-Party Rights: List of any pre-existing licenses or rights granted to third parties

4. Schedule 4: Security Procedures: Detailed procedures for maintaining security of confidential information

5. Schedule 5: Authorized Users: List of individuals or entities authorized to access or use the proprietary rights

6. Appendix A: Registration Certificates: Copies of relevant intellectual property registration certificates

7. Appendix B: Technical Documentation: Technical specifications and documentation related to the proprietary rights

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use

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