Perpetual License Maintenance for Malaysia

Perpetual License Maintenance Template for Malaysia

This agreement template is designed for use under Malaysian law to establish a perpetual software license and ongoing maintenance arrangement between a software provider and a customer. It combines permanent software licensing rights with long-term maintenance obligations, structured in accordance with Malaysian commercial law, particularly the Contracts Act 1950 and relevant technology legislation. The document addresses key aspects including license grant, maintenance services, service levels, intellectual property rights, data protection under PDPA 2010, and standard contractual protections, while providing flexibility for customization based on specific software and business requirements.

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What is a Perpetual License Maintenance?

This Perpetual License Maintenance agreement template is designed for use in Malaysia when a business needs to acquire permanent rights to use software while ensuring continued support and updates. It's particularly suitable for enterprise software implementations where the customer requires both perpetual usage rights and ongoing technical support. The agreement combines elements of a traditional software license with maintenance service provisions, structured to comply with Malaysian legislation including the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010. This document type is commonly used for business-critical software where long-term stability and support are essential, and where the customer prefers to make a one-time license payment rather than recurring subscription fees for the software itself.

What sections should be included in a Perpetual License Maintenance?

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

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

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

4. Grant of License: Scope of the perpetual license, including permitted uses and restrictions

5. Maintenance Services: Description of maintenance services, including updates, patches, and technical support

6. Service Levels: Performance standards, response times, and service availability commitments

7. Fees and Payment: License fees, maintenance fees, payment terms, and any additional charges

8. Intellectual Property Rights: Protection of IP rights, ownership of modifications, and restrictions

9. Confidentiality: Protection of confidential information and trade secrets

10. Data Protection: Compliance with PDPA 2010 and data handling requirements

11. Warranties and Disclaimers: Warranties provided and limitations of liability

12. Term and Termination: Duration of maintenance services, termination rights and consequences

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

What sections are optional to include in a Perpetual License Maintenance?

1. Source Code Escrow: Optional provisions for source code escrow arrangements, recommended for business-critical applications

2. Disaster Recovery: Additional provisions for disaster recovery and business continuity, important for critical systems

3. Training Services: Optional provisions for user training and knowledge transfer

4. Professional Services: Additional provisions for custom development or consulting services

5. Third-Party Software: Provisions dealing with third-party software components, if applicable

6. Export Controls: Compliance with export control laws, necessary if software contains restricted technologies

7. Insurance: Requirements for insurance coverage, often included in high-value agreements

What schedules should be included in a Perpetual License Maintenance?

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

2. Schedule 2 - Maintenance Services: Detailed scope of maintenance services, including support levels and procedures

3. Schedule 3 - Service Level Agreement: Detailed service levels, metrics, and remedies for non-performance

4. Schedule 4 - Fee Schedule: Detailed breakdown of license fees, maintenance fees, and payment schedules

5. Schedule 5 - Technical Requirements: Minimum system requirements and technical specifications

6. Schedule 6 - Support Procedures: Detailed procedures for requesting and receiving support services

7. Appendix A - Acceptable Use Policy: Guidelines for acceptable use of the software and services

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

Cost

Free to use
Relevant legal definitions
Relevant Industries

Information Technology

Banking and Financial Services

Manufacturing

Healthcare

Retail

Telecommunications

Education

Government and Public Sector

Professional Services

Energy and Utilities

Logistics and Transportation

Relevant Teams

Legal

Information Technology

Procurement

Finance

Information Security

Technical Support

Operations

Vendor Management

Risk Management

Compliance

Relevant Roles

Chief Information Officer

IT Director

Legal Counsel

Procurement Manager

Software Asset Manager

IT Operations Manager

Chief Technology Officer

Contract Manager

Information Security Officer

Technical Support Manager

Systems Administrator

Finance Director

Commercial Director

Vendor Management Officer

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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