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Corporate Software License Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which a software provider licenses their software product(s) to a corporate entity. The agreement covers essential aspects including license scope, usage rights, intellectual property protection, payment terms, support and maintenance, warranties, and liability limitations. It ensures compliance with Malaysian legislation including the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010, while providing clear guidelines for both parties regarding their rights and obligations in the software licensing relationship.

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What is a Corporate Software License?

This Corporate Software License agreement template is designed for use in Malaysia when a software provider wishes to license their software products to corporate customers. It provides a comprehensive framework for establishing the licensing relationship, protecting intellectual property rights, and ensuring compliance with Malaysian legislation. The document includes essential provisions for license scope, usage restrictions, fees, maintenance, warranties, and liability limitations, while incorporating requirements from key Malaysian laws such as the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010. This template is particularly suitable for business-to-business software licensing transactions and can be customized based on specific software functionality, deployment methods, and business requirements.

What sections should be included in a Corporate Software License?

1. Parties: Identification of the licensor and licensee with full corporate details

2. Background: Context of the agreement and brief description of the software

3. Definitions: Defined terms used throughout the agreement

4. License Grant: Scope and nature of the software license, including usage rights and restrictions

5. License Fees and Payment Terms: Financial terms, payment schedule, and related obligations

6. Intellectual Property Rights: Ownership and protection of IP rights in the software

7. Confidentiality: Protection of confidential information exchanged during the relationship

8. Warranties and Representations: Promises about software functionality, ownership, and compliance

9. Support and Maintenance: Terms for ongoing technical support and software updates

10. Term and Termination: Duration of agreement and circumstances for termination

11. Data Protection: Compliance with PDPA and data handling requirements

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

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

What sections are optional to include in a Corporate Software License?

1. Third-Party Software: Required when the licensed software incorporates third-party components

2. Professional Services: Include when implementation or configuration services are part of the deal

3. Source Code Escrow: Optional protection for business-critical software

4. Export Control: Required for software with international use or transfer restrictions

5. Disaster Recovery: Important for business-critical applications

6. Service Level Agreement: Include for software provided as a service or requiring specific performance levels

7. Network Security: Required for software accessing client networks or processing sensitive data

What schedules should be included in a Corporate Software License?

1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the software

2. Schedule 2 - License Fees: Detailed breakdown of all fees, payment milestones, and pricing terms

3. Schedule 3 - Support Services: Detailed support and maintenance terms, including SLAs if applicable

4. Schedule 4 - Authorized Users: Definition of user categories and associated access rights

5. Schedule 5 - Technical Requirements: Hardware, software, and network requirements for operation

6. Appendix A - Acceptable Use Policy: Detailed terms of proper software usage and restrictions

7. Appendix B - Data Processing Terms: Detailed data handling and protection requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Licensing Agreement

Sector

IP

Cost

Free to use

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