The Commercial License Agreement is essential for businesses operating in Malaysia who wish to formally grant or receive rights to use intellectual property, technology, or other commercial assets. This agreement type is commonly used when a business wants to monetize its intellectual property or expand its market reach through licensed partnerships. The document must comply with Malaysian legal requirements, including the Contracts Act 1950, relevant intellectual property legislation, and commercial regulations. It typically includes detailed provisions on license scope, payment terms, quality control, confidentiality, and termination rights. The agreement is particularly important in sectors where intellectual property rights are crucial, such as technology, manufacturing, and consumer goods, providing a structured framework for commercial licensing relationships while ensuring legal compliance and protection for all parties involved.
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1. Parties: Identification and details of the licensor and licensee, including registration numbers for companies
2. Background: Context of the agreement, brief description of the licensed property, and purpose of the licensing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Grant of License: Scope of the license, including territory, exclusivity, and permitted uses
5. License Fee and Payment Terms: Financial terms, payment schedule, and calculation of royalties if applicable
6. Duration and Termination: Term of the agreement, renewal provisions, and grounds for termination
7. Licensee Obligations: Key responsibilities and obligations of the licensee in using the licensed property
8. Licensor Obligations: Key responsibilities and obligations of the licensor, including support and maintenance if applicable
9. Intellectual Property Rights: Ownership of IP, protection measures, and handling of improvements or modifications
10. Confidentiality: Protection of confidential information and trade secrets
11. Warranties and Representations: Warranties regarding ownership, right to license, and quality assurances
12. Limitation of Liability: Limits on liability and exclusions of certain types of damages
13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Quality Control: Required when licensing trademarks or when product quality standards must be maintained
2. Sub-licensing Rights: Include when the licensee is permitted to sub-license the property to third parties
3. Source Code Escrow: For software licenses where source code access may be required under certain conditions
4. Training and Support: When the license includes provision of training or ongoing technical support
5. Export Control: Required when the licensed property may be subject to export regulations
6. Data Protection: Include when the licensed property involves processing of personal data
7. Insurance: When specific insurance coverage is required for the licensed activities
8. Audit Rights: When the licensor requires rights to audit licensee's use or royalty calculations
1. Schedule 1 - Licensed Property: Detailed description of the licensed property, including technical specifications
2. Schedule 2 - License Fee Structure: Detailed breakdown of fees, royalty calculations, and payment terms
3. Schedule 3 - Technical Requirements: Technical specifications, system requirements, or quality standards
4. Schedule 4 - Service Level Agreement: Performance metrics and service levels if support is included
5. Schedule 5 - Approved Sub-licensees: List of pre-approved sub-licensees if sub-licensing is permitted
6. Appendix A - Usage Guidelines: Detailed guidelines for using the licensed property
7. Appendix B - Reporting Templates: Standard forms for usage reports or royalty calculations
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Manufacturing
Telecommunications
Pharmaceutical
Media and Entertainment
Consumer Goods
Industrial Products
Biotechnology
Automotive
Energy
Retail
Financial Services
Relevant Teams
Legal
Commercial Operations
Business Development
Intellectual Property
Compliance
Technology
Innovation
Product Management
Partnerships
Strategy
Finance
Operations
Relevant Roles
Legal Counsel
Commercial Director
Licensing Manager
Intellectual Property Manager
Business Development Manager
Chief Technology Officer
Contract Manager
Commercial Operations Manager
Chief Legal Officer
Compliance Officer
Partnership Manager
Technology Transfer Officer
Innovation Director
Product Manager
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