Software License And Service Agreement for Malaysia

Software License And Service Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for software licensing and related services. This document combines software licensing provisions with service delivery commitments, addressing key aspects such as intellectual property rights, data protection under the Personal Data Protection Act 2010, service levels, maintenance and support obligations, and compliance with Malaysian regulatory requirements. It provides a framework for both traditional software licensing and Software-as-a-Service (SaaS) models, incorporating necessary protections for both the software provider and the customer.

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What is a Software License And Service Agreement?

The Software License And Service Agreement is essential for any software deployment in Malaysia, whether it's an on-premise installation or a cloud-based solution. This document is typically used when a software provider wishes to license their software and provide ongoing services to customers while ensuring compliance with Malaysian legislation, including the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010. The agreement covers critical aspects such as license scope, usage rights, service levels, maintenance and support, data protection, and intellectual property rights. It's particularly important in regulated industries where data protection and service reliability are crucial. The document should be customized based on the deployment model (on-premise vs. SaaS), the nature of services provided, and specific industry requirements.

What sections should be included in a Software License And Service Agreement?

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

2. Background: Context of the agreement, brief description of the software and services, and general intent of the parties

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

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

5. Services: Description of services to be provided, including implementation, maintenance, and support

6. Fees and Payment: License fees, service fees, payment terms, and consequences of non-payment

7. Intellectual Property Rights: Ownership of IP, protection of rights, and restrictions on use

8. Data Protection and Security: Compliance with PDPA, data handling obligations, and security requirements

9. Confidentiality: Protection of confidential information and trade secrets

10. Warranties and Representations: Standard warranties regarding software, services, and general representations

11. Limitation of Liability: Limitations and exclusions of liability under Malaysian law

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

13. Force Majeure: Events excusing performance and related procedures

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

15. Execution: Signature blocks and execution formalities

What sections are optional to include in a Software License And Service Agreement?

1. Service Level Agreement: Detailed service levels and performance metrics - include for SaaS or hosted solutions

2. Professional Services: Additional implementation or consulting services - include if professional services are part of the deal

3. Third-Party Software: Terms relating to third-party software components - include if third-party software is incorporated

4. Hardware Requirements: Minimum hardware specifications - include for on-premise software installations

5. Disaster Recovery: Disaster recovery and business continuity provisions - include for business-critical applications

6. Change Control: Procedures for managing changes to software or services - include for complex implementations

7. Export Control: Export control compliance - include if international usage is contemplated

8. Source Code Escrow: Source code escrow arrangements - include if requested by enterprise customers

What schedules should be included in a Software License And Service Agreement?

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

2. Schedule 2 - Service Specifications: Detailed description of maintenance, support, and other services

3. Schedule 3 - Fee Schedule: Detailed breakdown of all fees, including license fees, service fees, and payment schedules

4. Schedule 4 - Technical Requirements: Technical specifications, system requirements, and integration requirements

5. Schedule 5 - Service Level Metrics: Detailed service levels, measurement methods, and remedies

6. Schedule 6 - Support Procedures: Support tier definitions, escalation procedures, and response times

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

8. Appendix B - Data Processing Agreement: Detailed data protection and processing terms compliant with PDPA

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 legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Education

Professional Services

Telecommunications

Government and Public Sector

E-commerce

Logistics and Supply Chain

Construction

Relevant Teams

Legal

Information Technology

Procurement

Finance

Compliance

Information Security

Operations

Risk Management

Software Development

Solutions Architecture

Project Management

Vendor Management

Relevant Roles

Chief Technology Officer

IT Director

Chief Information Officer

Legal Counsel

Procurement Manager

Software Development Manager

Information Security Officer

Chief Financial Officer

Compliance Officer

Operations Director

Contract Manager

Enterprise Architect

Solutions Architect

IT Project Manager

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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