The Software Royalty Agreement is essential for businesses engaged in software licensing and distribution within Malaysia's legal framework. This document is typically used when a software owner wishes to grant rights to another party to use, distribute, or incorporate their software while receiving ongoing royalty payments. It addresses key aspects such as intellectual property rights, payment structures, and compliance with Malaysian technology and copyright laws. The agreement is particularly relevant in today's digital economy where software licensing forms a crucial part of business operations. It includes comprehensive provisions for protecting the rights of both licensors and licensees while ensuring compliance with Malaysian regulations, including the Copyright Act 1987 and Electronic Commerce Act 2006.
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1. Parties: Identification of the licensor and licensee, including full legal names and registered addresses
2. Background: Context of the agreement, brief description of the software, and purpose of the licensing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including technical terms and financial concepts
4. Grant of Rights: Scope of the license, permitted uses, and any territorial restrictions
5. Royalty Payments: Payment structure, calculation method, payment schedule, and reporting requirements
6. Intellectual Property Rights: Confirmation of ownership, protection of IP rights, and handling of improvements
7. Confidentiality: Protection of confidential information and trade secrets
8. Warranties and Representations: Warranties regarding software ownership, performance, and non-infringement
9. Term and Termination: Duration of agreement, renewal terms, and termination conditions
10. Post-Termination Obligations: Obligations and rights of parties after agreement termination
11. General Provisions: Standard clauses including governing law, dispute resolution, and notices
1. Source Code Escrow: Terms for source code protection and release conditions, used when licensee requires access security
2. Development Obligations: Terms for ongoing development and updates, included when software requires continuous development
3. Support and Maintenance: Terms for technical support and maintenance services, if included in the royalty arrangement
4. Joint Development Rights: Terms for collaborative development and ownership of improvements, used in joint development scenarios
5. Export Control: Compliance with export regulations, included for international licensing
6. Data Protection: Specific data handling and privacy requirements, included when personal data is processed
7. Change Control: Procedures for managing changes to the software, included for complex or evolving software
8. Audit Rights: Terms for auditing royalty calculations and usage, included for high-value agreements
1. Schedule 1: Software Description: Detailed technical specifications and functionality of the licensed software
2. Schedule 2: Royalty Calculation: Detailed methodology for calculating royalties, including examples and formulas
3. Schedule 3: Reporting Template: Standard format for regular royalty reports and calculations
4. Schedule 4: Service Levels: Performance metrics and service level requirements if applicable
5. Schedule 5: Territory Definition: Detailed description of licensed territories and any restrictions
6. Appendix A: Technical Requirements: Minimum technical requirements for software operation
7. Appendix B: Support Terms: Detailed support and maintenance terms if included
8. Appendix C: Compliance Requirements: Specific compliance and regulatory requirements applicable to the software
Relevant legal definitions
Agreement
Software
Source Code
Object Code
Documentation
Intellectual Property Rights
Licensed Software
License Fee
Royalty
Royalty Period
Confidential Information
Effective Date
Territory
Gross Revenue
Net Revenue
Authorized Users
Business Day
Commercial Release
Derivative Works
Development Tools
Distribution Channel
End User
Error
Improvements
Installation
License Key
Maintenance Release
Major Release
Minor Release
Patent Rights
Payment Date
Proprietary Rights
Reporting Period
Software Version
Technical Specifications
Term
Third Party Software
Trade Secrets
Update
Upgrade
User Interface
Working Hours
Software
Source Code
Object Code
Documentation
Intellectual Property Rights
Licensed Software
License Fee
Royalty
Royalty Period
Confidential Information
Effective Date
Territory
Gross Revenue
Net Revenue
Authorized Users
Business Day
Commercial Release
Derivative Works
Development Tools
Distribution Channel
End User
Error
Improvements
Installation
License Key
Maintenance Release
Major Release
Minor Release
Patent Rights
Payment Date
Proprietary Rights
Reporting Period
Software Version
Technical Specifications
Term
Third Party Software
Trade Secrets
Update
Upgrade
User Interface
Working Hours
Clauses
Grant of License
Intellectual Property Rights
Royalty Payments
Payment Terms
Reporting Requirements
Audit Rights
Confidentiality
Warranties
Representations
Software Maintenance
Technical Support
Usage Rights
Territory Restrictions
Distribution Rights
Quality Control
Performance Standards
Term and Duration
Termination
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Indemnification
Limitation of Liability
Insurance
Compliance
Data Protection
Export Control
Integration
Amendment
Severability
Waiver
Third Party Rights
Counterparts
Survival
Intellectual Property Rights
Royalty Payments
Payment Terms
Reporting Requirements
Audit Rights
Confidentiality
Warranties
Representations
Software Maintenance
Technical Support
Usage Rights
Territory Restrictions
Distribution Rights
Quality Control
Performance Standards
Term and Duration
Termination
Force Majeure
Assignment
Notices
Governing Law
Dispute Resolution
Indemnification
Limitation of Liability
Insurance
Compliance
Data Protection
Export Control
Integration
Amendment
Severability
Waiver
Third Party Rights
Counterparts
Survival
Relevant Industries
Technology
Software Development
Information Technology
Digital Media
Gaming
Financial Services
Healthcare Technology
Manufacturing
Telecommunications
E-commerce
Education Technology
Enterprise Software
Relevant Teams
Legal
Information Technology
Software Development
Finance
Business Development
Compliance
Revenue Operations
Intellectual Property
Commercial Operations
Partnerships
Product Management
Relevant Roles
Chief Technology Officer
Software Licensing Manager
Legal Counsel
IP Rights Manager
Business Development Director
Software Development Manager
Commercial Director
Contracts Manager
Chief Financial Officer
Technology Compliance Officer
Software Asset Manager
Intellectual Property Lawyer
Revenue Operations Manager
Partnership Manager
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