On Premise Software License Agreement for Malaysia

On Premise Software License Agreement Template for Malaysia

This agreement template is designed for software licensing transactions in Malaysia, governed by Malaysian law, specifically for on-premise software deployments. It incorporates key requirements under Malaysian legislation including the Copyright Act 1987, Personal Data Protection Act 2010, and Electronic Commerce Act 2006. The agreement provides a comprehensive framework for licensing software that will be installed and operated on the licensee's own infrastructure, covering essential aspects such as usage rights, restrictions, warranties, support services, and compliance with local regulations.

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What is a On Premise Software License Agreement?

This On Premise Software License Agreement is designed for use in Malaysia when a software provider wishes to license their software product for installation and use on a customer's local infrastructure. The agreement is governed by Malaysian law and incorporates requirements from relevant Malaysian legislation, including intellectual property, data protection, and electronic commerce laws. It should be used when software is being licensed for installation on the licensee's systems rather than being provided as a cloud service. The document includes comprehensive provisions for license scope, usage rights, technical requirements, support services, and compliance obligations, while addressing specific Malaysian legal and regulatory requirements. This type of agreement is particularly important for businesses requiring control over their software infrastructure or when data sovereignty and security requirements necessitate on-premise deployment.

What sections should be included in a On Premise Software License Agreement?

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

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

3. Definitions: Definitions of key terms used throughout the agreement

4. License Grant: Scope of the software license, including usage rights and territory restrictions

5. License Restrictions: Specific prohibitions and limitations on use of the software

6. Delivery and Installation: Terms regarding software delivery, installation process, and acceptance criteria

7. License Fees: Payment terms, fee structure, and payment schedule

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

9. Confidentiality: Protection and handling of confidential information

10. Warranties and Representations: Software performance warranties and legal compliance representations

11. Limitation of Liability: Caps on liability and exclusions of certain types of damages

12. Term and Termination: Duration of agreement, renewal terms, and termination rights

13. Post-Termination Obligations: Actions required after agreement termination

14. General Provisions: Standard legal clauses including governing law, notices, and assignment

What sections are optional to include in a On Premise Software License Agreement?

1. Data Protection: Required if the software processes personal data, ensuring compliance with PDPA 2010

2. Source Code Escrow: Optional protection for licensee through source code escrow arrangements

3. Professional Services: Include if additional implementation or consulting services are provided

4. Training: Include if training services are part of the agreement

5. Service Levels: Include if specific performance metrics are guaranteed

6. Disaster Recovery: Include for business-critical software implementations

7. Export Controls: Required if software is subject to export control regulations

8. Insurance: Include for high-value or high-risk implementations

What schedules should be included in a On Premise Software License Agreement?

1. Schedule 1 - Software Description: Detailed description of the licensed software, including versions and components

2. Schedule 2 - Technical Requirements: Hardware and software requirements for operating the software

3. Schedule 3 - License Fees: Detailed breakdown of license fees and payment schedule

4. Schedule 4 - Support and Maintenance: Terms and conditions for ongoing support and maintenance services

5. Schedule 5 - Service Levels: Detailed service level commitments and metrics

6. Schedule 6 - Implementation Plan: Timeline and milestones for software implementation

7. Appendix A - Authorized Users: Definition and list of authorized users or user categories

8. Appendix B - Acceptance Testing: Acceptance testing procedures and criteria

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Education

Government

Telecommunications

Professional Services

Energy

Transportation

Construction

Media and Entertainment

Hospitality

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Finance

Risk Management

Information Security

Operations

Commercial

Vendor Management

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Software Licensing Manager

Compliance Officer

IT Security Manager

Chief Technology Officer

Contract Manager

Commercial Director

Chief Legal Officer

IT Infrastructure Manager

Enterprise Architect

Chief Financial Officer

Risk Manager

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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