The Design Confidentiality Agreement is essential in situations where parties need to share sensitive design information, technical specifications, prototypes, or related intellectual property in Malaysia. This document is particularly crucial during product development, manufacturing negotiations, design consultancy, or collaborative projects where proprietary design information must be protected. The agreement ensures compliance with Malaysian legal requirements, including the Contracts Act 1950 and Industrial Designs Act 1996, while providing robust protection mechanisms for confidential design materials. It's commonly used before detailed design discussions, during product development phases, or when engaging external consultants or manufacturers who need access to proprietary design information.
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1. Parties: Identification of the disclosing party and receiving party, including full legal names and registered addresses
2. Background: Context of the agreement, relationship between parties, and purpose of sharing confidential design information
3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Design Materials', 'Authorized Purpose', and 'Representatives'
4. Scope of Confidential Information: Detailed description of what constitutes confidential design information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including use restrictions and protection standards
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed and to whom
7. Security Measures: Specific measures required to protect confidential design information
8. Return or Destruction of Information: Requirements for handling confidential information upon termination or request
9. Duration of Obligations: Term of the agreement and survival of confidentiality obligations
10. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
11. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement
1. Intellectual Property Rights: Section clarifying ownership and IP rights in the designs - include when design materials might involve patentable or registrable elements
2. Digital Security Requirements: Specific provisions for digital storage and transmission - include when design information is primarily digital
3. Third Party Disclosure: Procedures for sharing with third parties - include when subcontractors or consultants need access
4. Export Control: Compliance with export control laws - include when designs may have international usage restrictions
5. Insurance Requirements: Insurance obligations - include when high-value or high-risk designs are involved
6. Publicity Restrictions: Specific restrictions on public communications - include when design relates to market-sensitive products
1. Schedule 1 - Description of Design Materials: Detailed description of the specific designs and materials covered by the agreement
2. Schedule 2 - Authorized Representatives: List of individuals authorized to access the confidential design information
3. Schedule 3 - Security Protocols: Detailed security procedures and requirements for handling the confidential information
4. Schedule 4 - Permitted Purpose: Detailed description of the authorized use of the confidential design information
5. Appendix A - Form of Confidentiality Undertaking: Template confidentiality undertaking for individual representatives
6. Appendix B - Information Return Certificate: Template certificate confirming return or destruction of confidential information
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