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Standard License Agreement Template for Malaysia

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Key Requirements PROMPT example:

Standard License Agreement

"I need a Standard License Agreement for granting exclusive rights to a Malaysian software company to use our proprietary AI technology in Southeast Asia, with quarterly royalty payments and strict confidentiality provisions."

Document background
The Standard License Agreement serves as a crucial legal instrument in the Malaysian business landscape, used when one party wishes to grant another the right to use its intellectual property, technology, or proprietary assets while retaining ownership. This document type is essential for businesses operating under Malaysian jurisdiction, requiring compliance with local laws including the Contracts Act 1950, Copyright Act 1987, and other relevant IP legislation. It is particularly important in sectors where technology transfer, brand licensing, or software distribution is common. The agreement typically includes comprehensive terms covering license scope, territory restrictions, payment structures, quality control measures, and termination provisions, all tailored to meet Malaysian legal requirements and business practices.
Suggested Sections

1. Parties: Identification of the licensor and licensee with full legal names and registered addresses

2. Background: Context of the agreement, brief description of the licensed property, and general purpose of the license

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. License Grant: Scope and nature of the license (exclusive/non-exclusive), territory, and permitted uses

5. License Restrictions: Specific limitations on use, prohibited activities, and restrictions on sublicensing

6. Payment Terms: License fees, payment schedule, calculation methods, and late payment consequences

7. Intellectual Property Rights: Ownership declarations, protection of IP rights, and handling of improvements

8. Confidentiality: Protection of confidential information exchanged during the license relationship

9. Term and Termination: Duration of the license, renewal terms, and grounds for termination

10. Warranties and Representations: Warranties regarding ownership, non-infringement, and quality assurances

11. Limitation of Liability: Caps on liability and exclusions of certain types of damages

12. Indemnification: Obligations to defend and compensate for third-party claims

13. General Provisions: Standard clauses including governing law, notices, assignment, and entire agreement

Optional Sections

1. Source Code Escrow: For software licenses, provisions for source code deposit and release conditions

2. Quality Control: For trademark or brand licenses, specific quality standards and monitoring procedures

3. Training and Support: Details of technical support, maintenance, or training services if included

4. Export Control: For international licenses involving regulated technologies or products

5. Data Protection: When personal data processing is involved in the licensed activities

6. Performance Requirements: Minimum performance or sales targets for commercial licenses

7. Audit Rights: Rights to audit licensee's use and compliance with license terms

8. Insurance Requirements: Specific insurance coverage requirements for high-risk licenses

Suggested Schedules

1. Schedule 1 - Licensed Property: Detailed description of the licensed intellectual property, including specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of license fees, royalty calculations, and payment terms

3. Schedule 3 - Technical Specifications: Technical requirements, standards, and specifications for using the licensed property

4. Schedule 4 - Service Level Agreement: Performance standards and support levels if maintenance is included

5. Schedule 5 - Approved Sub-licensees: List of pre-approved sub-licensees if sublicensing is permitted

6. Schedule 6 - Territory Definition: Detailed description of geographic territories where license rights apply

7. Appendix A - Usage Guidelines: Specific guidelines for proper use of the licensed property

8. Appendix B - Reporting Templates: Standard forms for required reports and notifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Technology and Software

Manufacturing

Pharmaceuticals and Healthcare

Consumer Goods

Media and Entertainment

Telecommunications

Education and Training

Research and Development

Biotechnology

Industrial Equipment

Automotive

Green Technology

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Compliance

Research and Development

Technology

Operations

Finance

Product Development

Strategy

Innovation

Relevant Roles

Legal Counsel

Intellectual Property Manager

Licensing Director

Commercial Manager

Business Development Manager

Contract Administrator

Technology Transfer Officer

IP Rights Manager

Compliance Officer

Chief Technology Officer

Chief Legal Officer

Partnership Manager

Innovation Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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