The Software Development License Agreement is essential for businesses engaging in software development projects within Malaysia's legal framework. This document is used when a client requires custom software development services and needs to establish clear terms for the development process and subsequent software usage rights. It addresses key aspects such as intellectual property ownership, development methodology, acceptance criteria, and licensing terms, all while ensuring compliance with Malaysian legislation including the Copyright Act 1987, Personal Data Protection Act 2010, and Electronic Commerce Act 2006. The agreement is particularly crucial for protecting both the developer's intellectual property rights and the client's investment in the software development project.
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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: Key terms used throughout the agreement including Software, Documentation, Intellectual Property Rights, etc.
4. License Grant: Scope and nature of the license, including usage rights, restrictions, and territory
5. Development Services: Details of software development services, deliverables, and development methodology
6. Intellectual Property Rights: Ownership of IP, including pre-existing IP and newly developed features
7. Payment Terms: License fees, development costs, payment schedule, and any recurring charges
8. Warranties and Representations: Standard warranties regarding software functionality, IP rights, and compliance with laws
9. Confidentiality: Protection of confidential information exchanged during development and operation
10. Term and Termination: Duration of agreement, renewal terms, and termination conditions
11. Liability and Indemnification: Limitations of liability and mutual indemnification obligations
12. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Source Code Escrow: Terms for source code escrow arrangement, used when source code access might be needed in specific circumstances
2. Service Level Agreement: Specific performance metrics and support requirements, used for complex or business-critical software
3. Data Protection: Specific data handling and privacy requirements, needed when personal data processing is involved
4. Change Management: Procedures for requesting and implementing changes to the software, useful for long-term development projects
5. Training and Documentation: Requirements for user training and documentation delivery, important for complex software implementations
6. Acceptance Testing: Detailed testing procedures and acceptance criteria, crucial for custom development projects
7. Third-Party Components: Management of third-party software components and licenses, needed when external libraries are used
1. Schedule 1 - Software Specification: Detailed technical specifications of the software, including features and functionality
2. Schedule 2 - Development Milestones: Timeline of development phases, deliverables, and completion criteria
3. Schedule 3 - Acceptance Test Criteria: Specific testing requirements and acceptance procedures
4. Schedule 4 - Fee Schedule: Detailed breakdown of all fees, payment milestones, and pricing structures
5. Schedule 5 - Service Level Requirements: Detailed performance metrics, support levels, and response times
6. Appendix A - Technical Requirements: Hardware, software, and network requirements for operation
7. Appendix B - Security Requirements: Specific security standards and protocols to be implemented
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