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FTW Law Firm, Bali
Ubud, Indonesia

Founded in 2000
English
FTW Law Firm is an established commercial law practice in Bali that was set up as a partnership of legal consultants in 2000. The firm focuses on serving clients involved in Indonesian business activities with lawyers who are positioned to work across corporate matters and litigation needs.FTW Law...
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What an Ubud business should settle before licensing intellectual property

In Ubud, intellectual property licensing and transactions often involve hotel and villa brands, restaurant names, artwork, photographs, craft designs, music, and booking or wellness software. Ubud is in Gianyar Regency, Bali, but intellectual property rights and licensing rules are set nationally, not by a separate Ubud system.

A sound deal identifies exactly which rights are licensed, where and how they may be used, for how long, and what fees or royalties apply. It should also address quality controls, attribution, permitted changes, sublicensing, termination, and what happens to materials after the licence ends.

Before signing, confirm that the proposed licensor owns or controls the relevant rights and that any necessary Indonesian registration is in place. A local lawyer can coordinate contract review with an Indonesian intellectual property consultant where a filing or recordal is needed.

When a lawyer can prevent an expensive Ubud licensing problem

  • A villa or resort is adopting an overseas hotel brand and needs to check the licensor’s ownership, territorial rights, fees, and operating restrictions.
  • A restaurant or café wants permission to use a photographer’s images, a designer’s logo, or recorded music in its premises and promotions.
  • A local artist or craft business is asked to license designs to a retailer, hotel, or overseas buyer and needs limits on copying, exclusivity, and sublicensing.
  • A wellness business plans to use another company’s name, course materials, app, or software and needs to distinguish licensed content from services or methods.
  • A business is buying or taking over a Ubud venue and needs to confirm that its brand, website content, photographs, and software rights transfer with the deal.
  • A foreign business is entering a Bali collaboration and needs help with Indonesian-language contract requirements, local rights checks, or recording a licence with the national intellectual property office.

Indonesian laws that govern intellectual property licences

Law No. 28 of 2014 on Copyright has been in force since 16 October 2014. It governs copyright in works such as photographs, illustrations, music, and written materials, including economic rights that may be licensed.

Law No. 20 of 2016 on Trademarks and Geographical Indications has been in force since 25 November 2016. It governs trademark registration and rights, including the basis for licensing registered marks.

Government Regulation No. 36 of 2018 on the Recordation of Intellectual Property Licence Agreements was promulgated on 28 December 2018. It sets rules for recording licence agreements with the Ministry responsible for intellectual property; an unrecorded agreement may lack legal effect against third parties.

Frequently asked questions

What does intellectual property licensing cover?

A licence gives permission to use specified rights under agreed conditions; it does not automatically transfer ownership. The contract should identify the rights, permitted uses, territory, term, payment, and any exclusivity or sublicensing rights.

Do I need a lawyer to make a licence agreement?

There is no general rule requiring every business to hire a lawyer for a licence. Legal review is valuable where the deal involves valuable branding, foreign parties, exclusivity, royalties, several types of rights, or significant termination obligations.

Does every licence have to be recorded in Indonesia?

Indonesian rules provide for recording intellectual property licence agreements with the responsible ministry. Recordal can matter because an unrecorded agreement may not have legal effect against third parties; confirm the requirements for the specific rights and filing.

Can a foreign company license intellectual property for use in Ubud?

Foreign and Indonesian businesses can enter licensing arrangements, subject to the rights owner’s authority and applicable Indonesian rules. Check ownership, Indonesian registrations where relevant, contract language, and any separate business-permit requirements.

Should the agreement be in Indonesian?

Indonesian language requirements can apply to agreements involving Indonesian parties and foreign parties. A bilingual agreement may be appropriate, but the parties should have the Indonesian text reviewed so both versions express the same rights and obligations.

Can a licence be limited to Ubud or Bali?

The parties can define a limited territory in the contract, such as Ubud or Bali, if that fits the rights and business arrangement. The territory in the agreement does not itself limit the geographic scope of an underlying registered right.

How much does it cost to hire a lawyer for a licensing deal?

There is no single standard legal fee for this work. The quote may depend on negotiation, document length, due diligence, translation, filing or recordal, and whether the deal covers several rights; ask for a written scope and fee estimate.

How long does it take to complete a licensing transaction?

A straightforward review may take days, while a negotiated agreement or ownership investigation can take several weeks. Filing and recordal timing depends on the documents, the relevant procedure, and the authority’s processing.

What should I check before paying a licence fee?

Confirm the licensor’s identity and authority, the status of any relevant Indonesian registrations, and whether other parties have prior rights. Check payment triggers, royalties, audit rights, permitted uses, and what happens if the agreement ends.

Can I use a Ubud artist’s work if I credit the artist?

Credit alone does not necessarily give permission to reproduce or commercially use a protected work. Obtain permission covering the intended uses, media, duration, territory, and any edits or adaptations.

What if a proposed design uses local cultural motifs?

Ask who created the design and whether any community, cultural, or other permissions are relevant. A lawyer can help distinguish an individual creator’s rights from questions involving traditional cultural expressions and the proposed commercial use.

Official resources for intellectual property and local business matters

  • Directorate General of Intellectual Property (DJKI), Ministry of Law: administers Indonesia’s national intellectual property system, including applications and licence-agreement recordal.
  • Bali Regional Office of the Ministry of Law: provides ministry services and information in Bali and can direct users to relevant intellectual property services.
  • Gianyar Regency Investment and One-Stop Integrated Services Office (DPMPTSP): handles local investment and business-licensing services; it is not the intellectual property registry.

Steps to find and hire the right lawyer

  1. Define the deal. List the rights, business use, location, proposed term, and whether the arrangement is exclusive. Allow one or two days to gather the relevant documents.
  2. Collect the records. Assemble registrations, proof of ownership, prior agreements, draft terms, and fee proposals. Note any foreign parties or materials created by third parties.
  3. Shortlist relevant lawyers. Look for Indonesian lawyers who handle intellectual property contracts and transactions, with experience relevant to your business and language needs.
  4. Check filing capability. If registration or recordal is required, ask whether the lawyer works with a registered Indonesian intellectual property consultant and who will handle the filing.
  5. Compare scope and fees. Request a written estimate covering due diligence, drafting or negotiation, translations, filings, and any extra charges. Compare the proposed deliverables, not only the fee.
  6. Agree the work plan before signing. Confirm who owns each task, the review timetable, and approval points. Have the final agreement checked against the rights records and agreed commercial terms before signing or paying.

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Disclaimer:

The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.

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