Sub Licence Agreement for Malaysia

Sub Licence Agreement Template for Malaysia

A Malaysian-law governed Sub Licence Agreement is a legal document that enables a licensee (sub-licensor) to grant certain licensed rights to a third party (sub-licensee). This agreement operates under Malaysian jurisdiction and must comply with local intellectual property laws, including the Patents Act 1983, Trade Marks Act 2019, and Copyright Act 1987. The document establishes the terms and conditions for the sub-licensee's use of intellectual property rights, including payment terms, territorial restrictions, quality control requirements, and compliance obligations. It includes specific provisions required under Malaysian law to ensure enforceability and protection of the licensed rights.

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What is a Sub Licence Agreement?

The Sub Licence Agreement is a crucial document used when a licensee of intellectual property rights wishes to grant some or all of those rights to another party in Malaysia. This type of agreement is commonly used in various commercial contexts, such as technology licensing, franchise arrangements, or brand licensing schemes. The document must carefully balance the rights and obligations flowing from the main license agreement with the new sub-licensing arrangement, ensuring compliance with Malaysian intellectual property laws and regulations. It typically includes detailed provisions on scope of use, quality control, payment terms, and territorial restrictions, while maintaining the integrity of the original license agreement. The Sub Licence Agreement is particularly important in Malaysia's growing technology and manufacturing sectors, where intellectual property licensing is increasingly common.

What sections should be included in a Sub Licence Agreement?

1. Parties: Identification of the sub-licensor and sub-licensee, including full legal names and registered addresses

2. Background: Context of the agreement, including reference to the main license and authority to sub-license

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Sub-License: Scope of the sub-license, including specific rights granted and any restrictions

5. Term and Termination: Duration of the sub-license and circumstances for termination

6. Payments: Financial terms including license fees, royalties, and payment terms

7. Sub-Licensee Obligations: Key obligations and responsibilities of the sub-licensee

8. Intellectual Property Rights: Ownership and protection of intellectual property

9. Confidentiality: Protection of confidential information

10. Warranties and Indemnities: Standard warranties and indemnification provisions

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction

What sections are optional to include in a Sub Licence Agreement?

1. Technical Support and Maintenance: Terms for technical support and maintenance services if provided

2. Quality Control: Requirements for maintaining quality standards, particularly important for trademark licenses

3. Territory: Geographical limitations on the sub-license if applicable

4. Compliance: Specific regulatory or industry compliance requirements

5. Insurance: Insurance requirements for the sub-licensee

6. Audit Rights: Rights to audit sub-licensee's use of the licensed rights

7. Anti-Corruption: Specific anti-corruption and compliance provisions

8. Data Protection: Provisions relating to data protection if personal data is involved

What schedules should be included in a Sub Licence Agreement?

1. Schedule 1 - Licensed Rights: Detailed description of the intellectual property being sub-licensed

2. Schedule 2 - License Fees and Royalties: Detailed payment terms, calculations, and reporting requirements

3. Schedule 3 - Technical Specifications: Technical details and specifications of licensed technology or products

4. Schedule 4 - Quality Standards: Detailed quality control requirements and specifications

5. Schedule 5 - Main License Terms: Relevant terms from the main license agreement that affect the sub-license

6. Schedule 6 - Territory: Detailed description of territorial scope including any excluded territories

7. Schedule 7 - Approved Sub-License Uses: Specific approved uses and any restrictions on use

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

Technology and Software

Manufacturing

Pharmaceuticals and Healthcare

Consumer Goods

Media and Entertainment

Telecommunications

Automotive

Research and Development

Biotechnology

Retail

Relevant Teams

Legal

Intellectual Property

Commercial

Business Development

Compliance

Research and Development

Technology

Operations

Finance

Marketing

Relevant Roles

Legal Counsel

Intellectual Property Manager

Commercial Director

Licensing Manager

Business Development Manager

Chief Technology Officer

Compliance Officer

Contract Manager

Chief Legal Officer

Innovation Director

Technology Transfer Manager

Brand 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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