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Floating Software License

Floating Software License Template for Malaysia

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Key Requirements PROMPT example:

Floating Software License

"I need a Floating Software License agreement for my enterprise software that will be deployed across our Malaysian offices, allowing up to 500 concurrent users with advanced monitoring capabilities and integration with our existing identity management system, planned to commence from March 2025."

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Document background
This Floating Software License agreement is designed for use when implementing network-based software licensing arrangements in Malaysia, where multiple users within an organization need to share access to software applications through a concurrent licensing model. The document addresses key aspects required under Malaysian law, including compliance with the Personal Data Protection Act 2010, Copyright Act 1987, and Electronic Commerce Act 2006. It is particularly suitable for organizations seeking to optimize software licensing costs while maintaining control over user access and usage monitoring. The agreement includes essential provisions for license server configuration, authentication mechanisms, usage restrictions, and data protection measures, making it appropriate for both domestic Malaysian deployments and international organizations operating within Malaysian jurisdiction.
Suggested Sections

1. Parties: Identification of the licensor and licensee, including registered addresses and company registration numbers

2. Background: Context of the agreement, brief description of the software, and purpose of the floating license arrangement

3. Definitions: Definitions of key terms including 'Concurrent Users', 'License Server', 'Authorized Network', 'Usage Metrics'

4. Grant of License: Scope of license, concurrent user limits, and territory restrictions

5. License Server and Authentication: Requirements for license server setup, authentication mechanisms, and network configuration

6. Usage Restrictions: Limitations on use, prohibited activities, and user access controls

7. Monitoring and Compliance: License monitoring, audit rights, and reporting requirements

8. License Fees: Payment terms, fee calculation methods, and payment schedules

9. Data Protection: Compliance with PDPA 2010, data collection policies, and privacy measures

10. Intellectual Property Rights: Ownership of IP, protection of rights, and infringement procedures

11. Term and Termination: Duration, renewal terms, and termination conditions

12. Warranties and Limitations: Software performance warranties, disclaimer of warranties, and limitation of liability

13. General Provisions: Standard clauses including notices, governing law, and dispute resolution

Optional Sections

1. Service Level Agreement: Detailed service levels and support commitments, recommended for enterprise-level agreements

2. Disaster Recovery: Procedures for license server failures and emergency access provisions

3. Third-Party Integration: Terms for integration with other software systems, needed if software interfaces with other applications

4. Export Control: Export restrictions and compliance requirements, necessary for international use

5. Training and Support: Terms for user training and technical support, recommended for complex software

6. Custom Development: Terms for customization and modification rights, needed if software customization is offered

7. Beta Testing: Terms for beta feature testing and feedback, useful for evolving software products

Suggested Schedules

1. Schedule 1 - Software Description: Detailed description of software, modules, and features

2. Schedule 2 - Technical Requirements: System requirements, network specifications, and installation prerequisites

3. Schedule 3 - License Metrics: Detailed explanation of usage measurement and concurrent user calculations

4. Schedule 4 - Fee Schedule: Detailed pricing, payment terms, and fee calculation methods

5. Schedule 5 - Support Services: Support level details, response times, and escalation procedures

6. Appendix A - Acceptable Use Policy: Detailed rules and guidelines for software usage

7. Appendix B - Data Processing Agreement: Detailed terms for handling personal data in compliance with PDPA 2010

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Information Technology

Software Development

Education

Healthcare

Financial Services

Manufacturing

Professional Services

Government

Telecommunications

Research and Development

Engineering

Consulting

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Software Asset Management

Enterprise Architecture

Operations

Risk Management

Vendor Management

Relevant Roles

Chief Technology Officer

IT Director

Software Licensing Manager

Legal Counsel

Procurement Manager

Information Security Officer

Systems Administrator

Contract Manager

Technology Compliance Officer

Enterprise Architect

Software Asset Manager

IT Operations Manager

Chief Information Officer

Industries
Contracts Act 1950: Fundamental law governing contract formation, validity, and enforcement in Malaysia. Essential for establishing the basic contractual framework of the license agreement.
Copyright Act 1987: Protects software as intellectual property and defines the scope of copyright protection for computer programs in Malaysia.
Electronic Commerce Act 2006: Regulates electronic transactions and provides legal recognition for electronic contracts, relevant for software licensing and distribution.
Personal Data Protection Act 2010: Governs the collection and processing of personal data, important for user tracking and authentication aspects of floating licenses.
Consumer Protection Act 1999: Applies if the software is licensed to consumers, providing protection against unfair contract terms and guarantees for product quality.
Digital Signature Act 1997: Relevant for electronic execution of the license agreement and validation of digital signatures.
Price Control and Anti-Profiteering Act 2011: May be relevant for pricing and licensing fee structures, especially if the software is considered an essential service.
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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