Software License Contract for Malaysia

Software License Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which software is licensed from the owner (licensor) to the user (licensee). This document defines the scope of permitted use, licensing fees, intellectual property rights, warranties, and limitations of liability while ensuring compliance with Malaysian legislation including the Copyright Act 1987, Electronic Commerce Act 2006, and Personal Data Protection Act 2010. It provides clear guidelines for software deployment, maintenance, support, and dispute resolution within the Malaysian legal framework.

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What is a Software License Contract?

The Software License Contract serves as a crucial legal instrument in Malaysia's technology sector, establishing the framework for software distribution and usage rights. This document is essential when a software owner wishes to grant usage rights while retaining ownership of the intellectual property. It complies with Malaysian legislation, particularly the Copyright Act 1987 and Electronic Commerce Act 2006, while incorporating international best practices in software licensing. The contract covers critical aspects including license scope, usage restrictions, fees, warranties, and support terms. It's particularly relevant in today's digital economy where software deployment spans from simple applications to complex enterprise systems. The document can be customized for various licensing models including perpetual, subscription-based, or user-based licensing, and can accommodate both on-premises and cloud-based software solutions.

What sections should be included in a Software License Contract?

1. Parties: Identification and details of the licensor and licensee

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

4. Grant of License: Scope and nature of the license, including usage rights and restrictions

5. License Fees and Payment: Financial terms, payment schedule, and related conditions

6. Intellectual Property Rights: Ownership and protection of IP rights in the software

7. Confidentiality: Protection of confidential information and trade secrets

8. Warranties and Representations: Guarantees regarding software functionality and performance

9. Limitation of Liability: Limits on parties' liability and exclusions

10. Term and Termination: Duration of license and circumstances for termination

11. Post-Termination Obligations: Actions required after agreement ends

12. Governing Law and Jurisdiction: Applicable law and dispute resolution procedures

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

1. Maintenance and Support: Terms for ongoing support and updates - include if maintenance services are part of the agreement

2. Service Levels: Performance standards and metrics - relevant for enterprise software or critical applications

3. Data Protection and Privacy: Compliance with PDPA 2010 - include if personal data is processed

4. Security Requirements: Specific security standards and protocols - important for sensitive applications

5. Audit Rights: Rights to audit usage and compliance - relevant for enterprise licenses

6. Source Code Escrow: Terms for source code protection - include if source code access is critical

7. Export Control: Export regulations compliance - necessary for international licensing

8. Insurance: Insurance requirements - relevant for high-value or high-risk implementations

What schedules should be included in a Software License Contract?

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

2. License Fees Schedule: Detailed breakdown of all fees, payment terms and calculations

3. Service Level Agreement: Detailed performance metrics, response times, and service standards

4. Technical Requirements: Hardware, software, and network requirements for operation

5. Support and Maintenance Services: Detailed description of support services, response times, and procedures

6. Acceptable Use Policy: Detailed terms of acceptable use and restrictions

7. Data Processing Agreement: Detailed terms for handling personal data if applicable

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
Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

Education

Government and Public Sector

Telecommunications

Professional Services

E-commerce

Media and Entertainment

Transportation and Logistics

Energy and Utilities

Construction

Real Estate

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Finance

Operations

Information Security

Software Development

Commercial

Vendor Management

Technical Operations

Relevant Roles

Chief Technology Officer

Legal Counsel

IT Director

Software Development Manager

Procurement Manager

Compliance Officer

Contract Manager

Software Licensing Specialist

IT Asset Manager

Chief Information Officer

Chief Legal Officer

Information Security Manager

Risk Manager

Commercial Director

Technical Operations 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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