The Development License Agreement is a crucial legal instrument used when a technology owner wishes to authorize another party to develop, modify, or enhance their intellectual property while maintaining certain controls and rights. This agreement type is particularly relevant in Malaysia's growing technology sector, where it must comply with local legislation including the Contracts Act 1950, Copyright Act 1987, and Patents Act 1983. The document typically outlines development scope, technical specifications, quality standards, testing procedures, and acceptance criteria, while addressing intellectual property rights, confidentiality, and commercialization terms. It's essential for technology transfers, software development projects, and research collaborations, providing a structured framework for development activities while protecting both parties' interests under Malaysian law.
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1. Parties: Identification of the licensor and licensee, including full legal names and registration details
2. Background: Context of the agreement, nature of the development project, and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Scope of the license, territory, exclusivity, and permitted uses
5. Development Rights and Obligations: Specific rights granted and obligations of the licensee in development activities
6. Development Milestones and Timelines: Key development phases, deliverables, and completion dates
7. License Fees and Payment Terms: Financial terms including license fees, royalties, and payment schedules
8. Intellectual Property Rights: Ownership of existing and newly developed IP, and related rights
9. Quality Control and Standards: Required standards, specifications, and quality assurance processes
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration of agreement and circumstances for termination
12. Warranties and Indemnities: Representations, warranties, and indemnification obligations
13. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Source Code Escrow: Required when source code needs to be held in escrow for security
2. Technology Transfer: Needed when specific technical knowledge transfer is part of the agreement
3. Localization Rights: Include when development includes right to localize for specific markets
4. Performance Guarantees: Required when specific performance metrics need to be maintained
5. Export Control: Include when development involves controlled or restricted technologies
6. Data Protection: Required when personal data processing is involved in development
7. Open Source Components: Include when development incorporates open source software
8. Training and Support: Needed when ongoing training or support is part of the development license
9. Competition Restrictions: Include when specific non-compete provisions are required
10. Disaster Recovery: Required for critical development projects needing continuity planning
1. Schedule 1 - Licensed Technology: Detailed description of the technology being licensed for development
2. Schedule 2 - Development Specifications: Technical specifications and requirements for development
3. Schedule 3 - Milestone Schedule: Detailed timeline of development phases and deliverables
4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees, royalties, and payment terms
5. Schedule 5 - Quality Standards: Specific quality requirements and testing procedures
6. Schedule 6 - Support Services: Details of any support services to be provided
7. Schedule 7 - Approved Sub-contractors: List of approved sub-contractors if applicable
8. Appendix A - Technical Documentation: Reference technical documents and materials
9. Appendix B - Form of Progress Report: Template for required progress reporting
10. Appendix C - Acceptance Testing Procedures: Procedures for testing and accepting deliverables
Relevant legal definitions
Acceptance Criteria
Acceptance Tests
Background Intellectual Property
Commercial Release
Confidential Information
Deliverables
Development Environment
Development Materials
Development Period
Development Plan
Development Site
Documentation
Effective Date
Enhancement
Escrow Agent
Foreground Intellectual Property
Implementation Schedule
Intellectual Property Rights
License Fee
Licensed Materials
Licensed Technology
Maintenance Services
Milestone
Modification
Object Code
Progress Report
Project Manager
Quality Standards
Release
Royalty
Source Code
Specifications
Technical Information
Territory
Test Environment
Third Party Components
Trade Secret
Update
User Manual
Work Product
Acceptance Tests
Background Intellectual Property
Commercial Release
Confidential Information
Deliverables
Development Environment
Development Materials
Development Period
Development Plan
Development Site
Documentation
Effective Date
Enhancement
Escrow Agent
Foreground Intellectual Property
Implementation Schedule
Intellectual Property Rights
License Fee
Licensed Materials
Licensed Technology
Maintenance Services
Milestone
Modification
Object Code
Progress Report
Project Manager
Quality Standards
Release
Royalty
Source Code
Specifications
Technical Information
Territory
Test Environment
Third Party Components
Trade Secret
Update
User Manual
Work Product
Clauses
Grant of License
Development Rights
Intellectual Property
Payment Terms
Technical Specifications
Development Milestones
Quality Control
Acceptance Testing
Confidentiality
Performance Standards
Source Code Access
Maintenance and Support
Warranties
Indemnification
Limitation of Liability
Term and Termination
Force Majeure
Assignment
Sub-contracting
Dispute Resolution
Governing Law
Technology Transfer
Documentation Requirements
Training
Progress Reporting
Audit Rights
Data Protection
Export Control
Non-Competition
Notices
Amendment
Severability
Entire Agreement
Development Rights
Intellectual Property
Payment Terms
Technical Specifications
Development Milestones
Quality Control
Acceptance Testing
Confidentiality
Performance Standards
Source Code Access
Maintenance and Support
Warranties
Indemnification
Limitation of Liability
Term and Termination
Force Majeure
Assignment
Sub-contracting
Dispute Resolution
Governing Law
Technology Transfer
Documentation Requirements
Training
Progress Reporting
Audit Rights
Data Protection
Export Control
Non-Competition
Notices
Amendment
Severability
Entire Agreement
Relevant Industries
Information Technology
Software Development
Manufacturing
Telecommunications
Healthcare Technology
Financial Technology
Automotive
Electronics
Biotechnology
Educational Technology
Industrial Automation
Gaming and Entertainment
Aerospace and Defense
Smart Cities and IoT
Relevant Teams
Legal
Information Technology
Research & Development
Product Development
Intellectual Property
Software Development
Compliance
Business Development
Technical Operations
Innovation
Contract Management
Quality Assurance
Relevant Roles
Chief Technology Officer
Head of Legal
IP Counsel
Software Development Manager
Chief Legal Officer
Licensing Manager
Product Development Director
Technology Transfer Officer
Contract Manager
Innovation Director
Research & Development Manager
Technical Project Manager
Business Development Manager
Chief Information Officer
Compliance Officer
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