The Brand Usage Agreement serves as a crucial legal instrument in Malaysia for protecting and controlling brand assets while enabling their authorized use by third parties. It is essential when a brand owner wishes to permit another entity to use their brand assets while maintaining control over brand integrity and usage. The agreement must comply with Malaysian legislation, particularly the Trade Marks Act 2019 and related intellectual property laws, while incorporating international best practices for brand protection. This document typically includes comprehensive provisions for quality control, approval processes, territory restrictions, and royalty arrangements, making it vital for businesses engaged in licensing, franchising, or strategic partnerships in Malaysia. The agreement helps prevent unauthorized usage, maintains brand consistency, and provides clear remedies under Malaysian law in case of disputes.
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1. Parties: Identification of the brand owner and the authorized user, including full legal names and registration details
2. Background: Context of the agreement, including brand ownership confirmation and purpose of the brand usage arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Brand', 'Territory', 'Licensed Products/Services'
4. Grant of Rights: Specific rights granted for brand usage, including scope, territory, and any restrictions
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Quality Control: Standards and requirements for maintaining brand quality and integrity
7. Usage Guidelines: Specific rules and requirements for brand application and presentation
8. Approval Process: Procedures for obtaining approval for brand usage in specific applications
9. Fees and Royalties: Financial terms including usage fees, royalties, and payment terms
10. Representations and Warranties: Legal assurances from both parties regarding rights, authority, and compliance
11. Protection of Brand: Obligations regarding brand protection and handling of intellectual property rights
12. Termination: Grounds and procedures for termination and post-termination obligations
13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction details
14. General Provisions: Standard clauses including notices, assignment, and entire agreement
1. Sub-licensing Rights: Include when the user is permitted to sub-license the brand to third parties
2. Digital Usage: Include for agreements involving significant online or digital brand presence
3. Social Media Guidelines: Include when brand usage extends to social media platforms
4. Co-branding Provisions: Include when the agreement allows for co-branding opportunities
5. International Usage: Include when brand usage extends beyond Malaysia
6. Crisis Management: Include for high-profile brands requiring specific procedures for managing brand-related crises
7. Merchandising Rights: Include when the agreement involves production of branded merchandise
1. Brand Assets: Detailed listing and images of all brand elements covered by the agreement
2. Brand Guidelines: Comprehensive technical specifications for brand usage including colors, dimensions, positioning
3. Approved Products/Services: List of specific products or services for which brand usage is permitted
4. Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms
5. Approval Process Flowchart: Visual representation of the approval process for brand usage
6. Quality Control Standards: Detailed quality control requirements and inspection procedures
7. Territory Map: Geographic boundaries of permitted brand usage if territorially restricted
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