In July 27, 2018, the Indonesian government enacted Government Regulation No. 36 of 2018 on the Recordal of Intellectual Property License Agreements (GR No. 36/2018). This is the first government regulation ever issued in Indonesia on the procedures for recording license agreements for copyright and related rights, patents, trademarks, industrial designs, layout designs of integrated circuits, trade secrets, and plant varieties.

Requirements for License Agreements

For a license agreement to be eligible for recordal, GR No. 36/2018 sets out the following general requirements:

  • The licensor may not grant a license to the licensee if the terms of protection have lapsed or the IP registration is withdrawn.
  • The license agreement must be written, and in Indonesian.
  • The license agreement cannot include provisions that:
    • Harm Indonesia’s economy or national interests;
    • Hamper the ability of Indonesians to transfer, control, or develop technology;
    • Result in unfair business competition; or
    • Conflict with prevailing laws, religion, morality, and public order.

Additionally, the license agreement must contain the following information:

  • Date and place of execution of the license agreement;
  • Information regarding the licensor and the licensee;
  • Object of the license agreement;
  • Type of license (exclusive, non-exclusive, or sublicense);
  • Duration of the license agreement;
  • Applicable territory; and
  • Information on the party responsible for any patent annuity payment.

To avoid disclosing confidential information, it is advisable to submit a short-form license agreement containing only the aforementioned requirements, rather than the full license agreement between the parties.