Application License Agreement Template for Malaysia

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Key Requirements PROMPT example:

Application License Agreement

"I need an Application License Agreement for my enterprise HR management software that will be licensed to large corporations in Malaysia, with specific clauses for data protection compliance and integration with third-party payroll systems."

Document background
The Application License Agreement serves as a crucial legal framework for software providers operating in Malaysia who wish to license their applications to businesses or individuals. This document is essential when a software provider needs to establish clear terms for the use of their software while protecting their intellectual property rights and limiting liability. The agreement must comply with Malaysian legislation, particularly the Electronic Commerce Act 2006, Personal Data Protection Act 2010, and Copyright Act 1987. It's typically used when deploying software applications, whether cloud-based or on-premises, and includes provisions for data protection, usage restrictions, payment terms, and service levels. The document is structured to accommodate both B2B and B2C relationships while ensuring compliance with Malaysian consumer protection laws and digital commerce regulations.
Suggested Sections

1. Parties: Identifies the licensor and licensee with full legal names and addresses

2. Background: Explains the context of the agreement and the software application being licensed

3. Definitions: Defines key terms used throughout the agreement

4. Grant of License: Specifies the scope, nature, and limitations of the license granted

5. License Fees and Payment: Details the payment terms, fees, and payment schedule

6. Intellectual Property Rights: Establishes ownership of IP and protections for the software

7. Use Restrictions: Specifies prohibited uses and restrictions on the license

8. User Data and Privacy: Addresses data collection, use, and protection in compliance with PDPA

9. Term and Termination: Specifies duration, renewal terms, and termination conditions

10. Warranties and Disclaimers: Details warranties provided and disclaimers of liability

11. Limitation of Liability: Sets bounds on the parties' liability under the agreement

12. Confidentiality: Protects confidential information exchanged under the agreement

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

Optional Sections

1. Service Level Agreement: Include when the application requires specific uptime or performance guarantees

2. Updates and Maintenance: Include when ongoing updates and maintenance services are provided

3. Professional Services: Include when implementation, training, or consulting services are provided

4. Third-Party Components: Include when the software contains third-party elements requiring separate terms

5. Export Controls: Include for international licensing or when subject to export regulations

6. Source Code Escrow: Include when source code escrow arrangements are required

7. Audit Rights: Include when licensor requires rights to audit licensee's use of the software

Suggested Schedules

1. Schedule 1 - Application Specifications: Technical specifications and functionality of the licensed application

2. Schedule 2 - Service Level Terms: Detailed service level commitments and metrics

3. Schedule 3 - Fee Schedule: Detailed breakdown of license fees, payment terms, and additional charges

4. Schedule 4 - Support and Maintenance Terms: Details of support services and maintenance provisions

5. Schedule 5 - Data Processing Terms: Detailed terms for handling personal data in compliance with PDPA

6. Appendix A - Acceptable Use Policy: Detailed guidelines for acceptable use of the application

7. Appendix B - Technical Requirements: Minimum technical requirements for using the application

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Information Technology

Software Development

Financial Services

Healthcare

Education

E-commerce

Manufacturing

Professional Services

Telecommunications

Government and Public Sector

Retail

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Software Development

Compliance

Sales

Product Management

Information Security

Commercial Operations

Risk Management

Business Development

Vendor Management

Relevant Roles

Legal Counsel

Software Licensing Manager

Contract Manager

Chief Technology Officer

IT Director

Procurement Manager

Software Development Manager

Compliance Officer

Data Protection Officer

Business Development Manager

Sales Director

Product Manager

Chief Information Officer

Legal Operations Manager

Commercial 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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