The Software License Agreement is a critical legal document used when a software provider wishes to grant usage rights to their software while retaining ownership of the intellectual property. This agreement, governed by Malaysian law, is essential for software companies, technology providers, and businesses engaging in software licensing transactions within Malaysia. It encompasses key provisions required under Malaysian legislation, including compliance with the Copyright Act 1987, Contracts Act 1950, and Personal Data Protection Act 2010. The document typically includes detailed terms covering license scope, usage restrictions, fees, maintenance, support services, and liability limitations. It serves as the primary agreement governing the relationship between software providers and their customers, providing clear guidelines for software deployment, use, and protection of intellectual property rights.
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1. Parties: Identification of the licensor and licensee, including their full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of the software, and purpose of the license
3. Definitions: Detailed definitions of key terms used throughout the agreement, including Software, Documentation, Intellectual Property Rights, etc.
4. License Grant: Scope of the license, including type (exclusive/non-exclusive), territory, and permitted uses
5. License Restrictions: Specific prohibitions and limitations on use of the software
6. Intellectual Property Rights: Confirmation of ownership and protection of IP rights in the software
7. Payment Terms: License fees, payment schedule, and consequences of non-payment
8. Warranties and Representations: Standard warranties regarding software functionality and IP rights
9. Limitation of Liability: Caps on liability and exclusions of certain types of damages
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Confidentiality: Protection of confidential information exchanged during the relationship
12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
1. Professional Services: Include when implementation, training, or maintenance services are provided alongside the software license
2. Service Level Agreement: Include for software that includes hosted or cloud-based components
3. Data Protection: Include when the software processes personal data, ensuring compliance with PDPA 2010
4. Source Code Escrow: Include when source code escrow arrangements are required for business continuity
5. Export Controls: Include when the software may be subject to export control regulations
6. Audit Rights: Include when the licensor needs rights to audit licensee's use of the software
7. Third-Party Software: Include when the software incorporates third-party components or dependencies
8. Insurance: Include when specific insurance requirements are needed for high-value or high-risk implementations
1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the software
2. Schedule 2 - License Fees: Detailed breakdown of license fees, payment terms, and pricing models
3. Schedule 3 - Support and Maintenance: Details of support services, response times, and maintenance terms
4. Schedule 4 - Service Levels: Performance metrics, availability requirements, and service credits
5. Schedule 5 - Implementation Plan: Timeline and milestones for software implementation if applicable
6. Appendix A - Authorized Users: Definition and limitations of authorized users and access rights
7. Appendix B - Technical Requirements: Minimum system requirements and technical specifications for operating the software
Relevant legal definitions
Clauses
Relevant Industries
Technology & Software
Financial Services
Healthcare
Manufacturing
Retail
Education
Government & Public Sector
Telecommunications
Professional Services
E-commerce
Media & Entertainment
Relevant Teams
Legal
Information Technology
Procurement
Compliance
Finance
Software Development
Information Security
Risk Management
Commercial Operations
Vendor Management
Relevant Roles
Chief Technology Officer
Chief Information Officer
Legal Counsel
IT Director
Procurement Manager
Software Licensing Manager
Contract Manager
Information Security Officer
Technology Risk Manager
Software Development Manager
Commercial Director
Chief Financial Officer
Compliance Officer
IT Asset Manager
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