Perpetual Use License for Malaysia

Perpetual Use License Template for Malaysia

This document is a comprehensive Perpetual Use License agreement governed by Malaysian law, designed to grant permanent software usage rights while protecting the licensor's intellectual property. It establishes the terms and conditions for perpetual software use, including usage restrictions, maintenance provisions, and compliance requirements under Malaysian jurisdiction. The agreement incorporates relevant provisions from Malaysian legislation, including the Copyright Act 1987 and Contracts Act 1950, ensuring robust protection for both parties while maintaining compliance with local legal requirements.

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What is a Perpetual Use License?

This Perpetual Use License agreement is essential for software companies and developers looking to grant permanent, non-revocable usage rights to their software products in Malaysia. The document is specifically crafted to comply with Malaysian legal requirements, including the Copyright Act 1987, Contracts Act 1950, and relevant digital commerce regulations. It should be used when the intention is to provide indefinite use rights in exchange for a one-time payment, rather than subscription-based or term-limited licensing. The agreement covers crucial aspects such as scope of use, intellectual property protection, technical support arrangements, and compliance requirements, while incorporating Malaysian legal principles and commercial practices. This template is particularly valuable for both domestic and international software transactions within the Malaysian jurisdiction.

What sections should be included in a Perpetual Use License?

1. Parties: Identification of the Licensor and Licensee with full legal names and addresses

2. Background: Context of the agreement, nature of the software, and general purpose of the license

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

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

5. License Fees: One-time payment terms and any ongoing maintenance fees

6. Intellectual Property Rights: Assertion of ownership and protection of IP rights

7. Use Restrictions: Specific prohibitions and limitations on use of the software

8. Licensee Obligations: Requirements for proper use, security measures, and compliance

9. Technical Support and Maintenance: Terms for ongoing support and maintenance services

10. Warranties and Representations: Warranties regarding software functionality and performance

11. Limitation of Liability: Limits on liability and disclaimers

12. Term and Termination: Duration of perpetual license and circumstances for termination

13. General Provisions: Standard legal provisions including governing law, notices, and assignment

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

1. Source Code Escrow: Terms for source code escrow arrangement, used when source code access might be needed for business continuity

2. Data Protection: Specific provisions for handling personal data, required if the software processes user data

3. Export Controls: Compliance with export regulations, needed for international use

4. Third-Party Software: Terms relating to incorporated third-party software, needed if the software includes third-party components

5. Service Level Agreement: Detailed service levels and performance metrics, used when specific performance guarantees are required

6. Audit Rights: Rights to audit licensee's use of the software, included for high-value enterprise licenses

What schedules should be included in a Perpetual Use License?

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

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

3. Schedule 3 - License Fees: Detailed breakdown of all applicable fees and payment terms

4. Schedule 4 - Support and Maintenance Services: Detailed description of support services, response times, and maintenance terms

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

6. Appendix B - Accepted Use Policy: Detailed rules and guidelines for acceptable use of the software

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

Use Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Information Technology

Financial Services

Healthcare

Education

Manufacturing

Retail

Professional Services

Government

Telecommunications

Media and Entertainment

Energy and Utilities

Transportation and Logistics

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Software Development

Commercial Operations

Risk Management

Business Development

Enterprise Architecture

Vendor Management

Relevant Roles

Chief Technology Officer

Legal Counsel

Software Licensing Manager

Procurement Manager

IT Director

Commercial Director

Software Development Manager

Contracts Manager

Compliance Officer

Business Development Manager

Technology Operations Manager

Enterprise Architecture 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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