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Technology Exchange Agreement for Indonesia

Technology Exchange Agreement Template for Indonesia

A Technology Exchange Agreement under Indonesian law is a comprehensive legal document that governs the transfer, sharing, or exchange of technological capabilities, knowledge, or systems between two or more parties. The agreement must comply with Indonesia's technology transfer regulations, particularly Law No. 11 of 2019 on National System of Science and Technology and related regulations. It addresses key aspects such as intellectual property rights, implementation procedures, technical specifications, training requirements, and local content obligations while ensuring alignment with Indonesian foreign investment and technology transfer policies.

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What is a Technology Exchange Agreement?

The Technology Exchange Agreement is essential for organizations seeking to transfer or exchange technological capabilities within Indonesia's jurisdiction. This document is particularly crucial given Indonesia's specific regulatory requirements for technology transfer, including mandatory provisions under Law No. 11 of 2019 and Government Regulation No. 20 of 2005. The agreement is commonly used when companies or institutions wish to share proprietary technology, technical knowledge, or systems while ensuring proper protection of intellectual property rights and compliance with local regulations. It includes detailed provisions for implementation, training, support, and quality control, while addressing Indonesia's local content requirements and technology transfer registration obligations. The document is particularly relevant for cross-border technology exchanges, requiring careful consideration of both Indonesian and international technology transfer regulations.

What sections should be included in a Technology Exchange Agreement?

1. Parties: Identification of the parties entering into the agreement, including their legal status and registered addresses

2. Background: Context of the agreement, including the parties' expertise and reasons for entering into the technology exchange

3. Definitions: Detailed definitions of technical terms, technology components, and key concepts used in the agreement

4. Scope of Technology Exchange: Detailed description of the technology to be exchanged, including technical specifications and implementation scope

5. Rights and Obligations: Specific rights and responsibilities of each party in relation to the technology exchange

6. Technology Transfer Process: Step-by-step process for implementing the technology exchange, including timeline and milestones

7. Intellectual Property Rights: Ownership and protection of IP rights, including pre-existing IP and newly developed technology

8. Confidentiality: Protection of confidential information and trade secrets shared during the exchange

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

10. Compliance with Laws: Obligations to comply with Indonesian technology transfer regulations and registration requirements

11. Warranties and Representations: Guarantees regarding ownership, right to transfer, and quality of technology

12. Liability and Indemnification: Allocation of risks and responsibilities for damages

13. Dispute Resolution: Procedures for resolving disputes, including choice of forum and applicable law

14. General Provisions: Standard contractual clauses including notices, amendments, and severability

What sections are optional to include in a Technology Exchange Agreement?

1. Training and Support: Details of technical training and ongoing support if required for the technology implementation

2. Joint Development: Terms for collaborative development of new technologies or improvements

3. Quality Control: Standards and procedures for maintaining quality in technology implementation

4. Export Control: Compliance with export control regulations if technology transfer involves international elements

5. Performance Metrics: Specific performance standards and evaluation criteria for the technology

6. Commercialization Rights: Terms for commercial exploitation of the technology in specific markets

7. Source Code Escrow: Arrangements for software source code escrow if applicable

8. Local Content Requirements: Compliance with Indonesian local content requirements if applicable

What schedules should be included in a Technology Exchange Agreement?

1. Schedule A - Technical Specifications: Detailed technical specifications of the technology being exchanged

2. Schedule B - Implementation Timeline: Detailed timeline for technology transfer and implementation milestones

3. Schedule C - Training Program: Detailed outline of training programs and knowledge transfer activities

4. Schedule D - Quality Standards: Specific quality standards and testing procedures

5. Schedule E - Support Services: Details of technical support and maintenance services

6. Schedule F - Commercial Terms: Pricing, payment terms, and commercial conditions

7. Appendix 1 - Technical Documentation: User manuals, technical guides, and other documentation

8. Appendix 2 - Compliance Certificates: Relevant regulatory approvals and compliance certificates

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

Document Type

Transfer Agreement

Cost

Free to use

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