Trademark Agreement Template for Malaysia

A Trademark Agreement is a legal contract that governs how trademark rights are shared, licensed, or transferred between parties in Malaysia. This document ensures that your intellectual property arrangements comply with the Trademarks Act 2019 and protect both the trademark owner's brand integrity and the licensee's commercial interests.

When do you need this document?

You need a Trademark Agreement when licensing your trademark to franchisees, distributors, or business partners operating in Malaysia. This includes situations where multinational corporations grant usage rights to local Malaysian subsidiaries, when foreign companies license their brands to Malaysian distributors, or when joint venture partners share trademark rights. The agreement is also essential for holding company structures where trademark ownership needs to be formally arranged between parent and subsidiary companies, and for individual business owners expanding their brand through licensing arrangements.

Key legal considerations

Your Trademark Agreement must clearly define the scope of rights granted, including whether the license is exclusive or non-exclusive, geographical limitations within Malaysia, and specific products or services covered. Quality control provisions are crucial under Malaysian law, as the trademark owner must maintain standards to preserve trademark validity. The agreement should specify royalty structures, payment terms, and duration of the arrangement. Termination clauses must address what happens to existing inventory and ongoing obligations when the agreement ends. Include provisions for trademark registration maintenance, enforcement against infringers, and compliance with competition law requirements to avoid anti-competitive practices.

Legal requirements in Malaysia

Under the Trademarks Act 2019, trademark licenses must be recorded with the Intellectual Property Corporation of Malaysia (MyIPO) to be enforceable against third parties. The agreement must comply with the Contracts Act 1950 for basic contract validity, including proper consideration and mutual consent. Competition Act 2010 requirements mean your agreement cannot contain anti-competitive clauses that abuse market position or restrict fair competition. If your trademark is registered internationally under the Madrid Protocol, ensure the agreement acknowledges these international rights. The document must specify governing law as Malaysian law and designate Malaysian courts for dispute resolution to ensure enforceability within the jurisdiction.