Software Agreement Contract for Malaysia

Software Agreement Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for software licensing, implementation, and usage. This document outlines the rights and obligations of both the software provider and the licensee, including licensing terms, intellectual property rights, payment structures, maintenance and support provisions, warranties, and liability limitations. It incorporates specific requirements under Malaysian legislation, including the Copyright Act 1987, Contracts Act 1950, and Personal Data Protection Act 2010, ensuring compliance with local regulatory frameworks while protecting both parties' interests in the software transaction.

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What is a Software Agreement Contract?

The Software Agreement Contract serves as a critical legal framework for software licensing and implementation transactions in Malaysia. This document is essential when organizations seek to license software solutions, whether for internal use, commercial distribution, or customer deployment. It encompasses crucial elements such as license scope, usage rights, intellectual property protection, maintenance terms, and compliance with Malaysian regulations including the Copyright Act 1987, Contracts Act 1950, and Personal Data Protection Act 2010. The agreement is particularly vital in today's digital economy where software deployments must balance technological capabilities with legal protection and regulatory compliance. It provides comprehensive coverage of implementation requirements, support obligations, data protection measures, and risk allocation between parties, while ensuring alignment with Malaysian legal requirements and business practices.

What sections should be included in a Software Agreement Contract?

1. Parties: Identification and details of the software provider/licensor and licensee

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

3. Definitions: Defined terms used throughout the agreement, including technical terms specific to the software

4. License Grant: Scope, nature, and limitations of the software license being granted

5. Payment Terms: License fees, payment schedule, and related financial terms

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

7. Intellectual Property Rights: Protection of IP rights, ownership of software and derivative works

8. Confidentiality: Protection of confidential information and trade secrets

9. Warranties and Representations: Software performance guarantees and compliance warranties

10. Support and Maintenance: Terms for technical support, updates, and maintenance services

11. Term and Termination: Duration of agreement and conditions for termination

12. Limitation of Liability: Limits on liability and exclusions of certain types of damages

13. Data Protection: Compliance with PDPA 2010 and data handling obligations

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

What sections are optional to include in a Software Agreement Contract?

1. Source Code Escrow: Used when source code needs to be held in escrow for business continuity

2. Service Level Agreement: Include when specific performance metrics and service levels are required

3. Third-Party Software: Required when the software incorporates third-party components

4. Training: Include when user training is part of the agreement

5. Export Controls: Necessary for software with international distribution

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

7. Change Control: Used when formal processes for software modifications are needed

8. Security Requirements: Include for software handling sensitive data or requiring specific security measures

What schedules should be included in a Software Agreement Contract?

1. Software Description: Detailed technical specifications and functionality of the software

2. License Fees: Detailed breakdown of all fees and payment schedules

3. Support Services: Detailed description of support and maintenance services

4. Service Levels: Performance metrics, response times, and service standards

5. Acceptance Tests: Criteria and procedures for software acceptance testing

6. Data Processing Terms: Detailed terms for personal data processing compliance

7. Security Requirements: Technical and organizational security measures

8. Third-Party Licenses: List and terms of third-party software components

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

E-commerce

Media and Entertainment

Logistics and Supply Chain

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Software Development

Information Security

Risk Management

Vendor Management

Operations

Finance

Relevant Roles

Chief Technology Officer

Legal Counsel

IT Director

Procurement Manager

Software Development Manager

Compliance Officer

Contract Manager

Information Security Officer

Technology Risk Manager

VP of Engineering

Head of IT

Chief Information Officer

Software Licensing Manager

Legal Operations Manager

IT Project 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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