Trade Secret License for Malaysia

Trade Secret License Template for Malaysia

A Trade Secret License Agreement under Malaysian law is a legally binding document that enables the controlled sharing of confidential proprietary information between parties while maintaining its secret nature. The agreement, governed by Malaysian legislation including the Contracts Act 1950 and common law principles on confidentiality, establishes the terms under which trade secrets can be used, the obligations for maintaining confidentiality, and the consequences of unauthorized disclosure. It provides comprehensive protection for valuable business information while allowing for its commercial exploitation through licensing.

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What is a Trade Secret License?

The Trade Secret License Agreement is essential in Malaysia's business landscape where companies increasingly need to share valuable proprietary information while maintaining legal protection. This document type is particularly relevant when a business wants to monetize its trade secrets without selling them outright, or when collaborative business relationships require the sharing of confidential processes, formulas, or methods. The agreement, structured under Malaysian law, includes detailed provisions for protecting the confidentiality of the licensed trade secrets, specific permitted uses, security measures, and enforcement mechanisms. It's commonly used in technology transfers, manufacturing partnerships, and other business arrangements where proprietary knowledge needs to be shared under controlled conditions.

What sections should be included in a Trade Secret License?

1. Parties: Identification of the trade secret owner (licensor) and the licensee, including full legal names and registration details

2. Background: Context of the agreement, brief description of the trade secret(s), and the business relationship between the parties

3. Definitions: Detailed definitions of key terms including 'Trade Secrets', 'Confidential Information', 'Licensed Use', and other relevant terminology

4. Grant of License: Scope and nature of the license granted, including permitted uses and territorial restrictions

5. Confidentiality Obligations: Detailed obligations regarding the protection and non-disclosure of trade secrets

6. Security Measures: Specific measures required to protect the trade secrets, including physical, technical, and administrative controls

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Post-Termination Obligations: Obligations that survive termination, including ongoing confidentiality requirements

9. Warranties and Representations: Warranties regarding ownership and right to license the trade secrets

10. Breach and Remedies: Consequences of breach and available remedies, including injunctive relief

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

What sections are optional to include in a Trade Secret License?

1. Sublicensing Rights: Include when licensee may need to share trade secrets with third parties or subsidiaries

2. Improvements and Modifications: Include when licensee might develop improvements to the trade secrets

3. Audit Rights: Include when licensor requires right to audit licensee's compliance

4. Insurance Requirements: Include when specific insurance coverage is required for the licensed trade secrets

5. Export Control: Include when trade secrets might be subject to export control regulations

6. Employee Training: Include when specific training requirements are needed for licensee's employees

7. Alternative Dispute Resolution: Include when parties prefer mediation or arbitration over court proceedings

What schedules should be included in a Trade Secret License?

1. Schedule 1: Description of Trade Secrets: Detailed description of the licensed trade secrets and technical information

2. Schedule 2: Authorized Personnel: List of authorized personnel who may access the trade secrets

3. Schedule 3: Security Protocols: Detailed security measures and protocols for protecting trade secrets

4. Schedule 4: License Fees: Details of any applicable license fees and payment terms

5. Schedule 5: Reporting Requirements: Format and frequency of required reports on trade secret usage

6. Appendix A: Non-Disclosure Agreement: Template NDA for additional parties who may need access

7. Appendix B: Security Breach Protocol: Procedures to follow in case of security breach or unauthorized disclosure

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

Manufacturing

Pharmaceuticals

Chemical Industry

Food and Beverage

Automotive

Electronics

Software Development

Biotechnology

Industrial Processing

Research and Development

Consumer Goods

Energy

Relevant Teams

Legal

Research and Development

Intellectual Property

Operations

Technology

Innovation

Compliance

Business Development

Manufacturing

Quality Control

Technical Operations

Commercial

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Chief Legal Officer

Intellectual Property Counsel

Legal Director

Research and Development Director

Innovation Manager

Technology Transfer Officer

Business Development Manager

Compliance Officer

Operations Director

Manufacturing Manager

Quality Control Manager

Process Engineer

Technical Director

Commercial Director

Licensing 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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