The License and Supply Agreement is essential for businesses operating in Malaysia that wish to combine intellectual property licensing with product supply arrangements in a single comprehensive agreement. This document is particularly useful when a company wants to license its intellectual property (such as technology, patents, or trademarks) while also maintaining control over the supply chain of related products or materials. The agreement needs to comply with Malaysian legislation, including the Contracts Act 1950, Patents Act 1983, Trademarks Act 2019, and relevant commercial laws. It typically includes detailed provisions on license scope, supply terms, quality control, pricing, intellectual property protection, and risk allocation. This type of agreement is commonly used in manufacturing, technology, and consumer goods sectors where product supply is intrinsically linked to intellectual property rights.
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1. Parties: Identifies and provides full details of the contracting parties
2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Grant of License: Details of the license granted, including scope, territory, and any restrictions
5. Supply Obligations: Core supply terms including ordering process, delivery, and acceptance procedures
6. Quality Requirements: Quality standards, specifications, and quality control procedures
7. Intellectual Property Rights: Ownership and protection of IP, including any improvements or modifications
8. Payments: License fees, supply prices, payment terms, and review mechanisms
9. Term and Termination: Duration of agreement and circumstances for termination
10. Confidentiality: Protection of confidential information and trade secrets
11. Warranties and Indemnities: Warranties regarding products/IP and related indemnification obligations
12. Liability: Limitation of liability and exclusions
13. Force Majeure: Provisions for handling events beyond parties' reasonable control
14. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Minimum Purchase Requirements: Include when there are minimum ordering obligations
2. Marketing and Promotion: Include when parties have specific marketing obligations or restrictions
3. Training and Support: Include when technical training or ongoing support is part of the arrangement
4. Data Protection: Include when personal data processing is involved
5. Anti-Corruption: Include for cross-border agreements or when dealing with government entities
6. Insurance: Include when specific insurance requirements are necessary
7. Environmental Compliance: Include when environmental regulations are particularly relevant
8. Export Control: Include when products are subject to export control regulations
1. Schedule 1 - Licensed IP: Detailed description of licensed intellectual property
2. Schedule 2 - Products: Specifications and details of products to be supplied
3. Schedule 3 - Pricing and Payment Terms: Detailed pricing structure, including license fees and product prices
4. Schedule 4 - Quality Standards: Detailed quality specifications and testing procedures
5. Schedule 5 - Service Levels: Performance metrics and service level requirements
6. Schedule 6 - Territory: Detailed description of licensed territory and any restrictions
7. Schedule 7 - Technical Support: Details of support services and response times
8. Appendix A - Order Form Template: Standard form for placing orders
9. Appendix B - Approved Sub-contractors: List of approved sub-contractors if relevant
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