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Commercial Software License for Malaysia

Commercial Software License Template for Malaysia

A comprehensive commercial software license agreement governed by Malaysian law, designed to establish the terms and conditions for the licensing of proprietary software to business users. The agreement incorporates key requirements under Malaysian legislation, including the Contracts Act 1950, Copyright Act 1987, and Personal Data Protection Act 2010. It covers essential elements such as license scope, usage rights, fees, warranties, and liability provisions, while ensuring compliance with Malaysian intellectual property and data protection requirements. The document is structured to protect both the licensor's intellectual property rights and the licensee's business interests within the Malaysian legal framework.

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What is a Commercial Software License?

This Commercial Software License agreement template is designed for use in Malaysia when a software provider wishes to license their proprietary software to business customers. The document complies with Malaysian legislation and commercial practices, incorporating necessary provisions under the Contracts Act 1950, Copyright Act 1987, and other relevant laws. It is particularly suitable for software companies operating in Malaysia or international companies licensing software to Malaysian businesses. The agreement includes comprehensive terms covering license grant, usage restrictions, fees, intellectual property protection, warranties, and liability limitations, while addressing specific Malaysian legal requirements such as data protection compliance and electronic commerce regulations. This template serves as a foundation for negotiating and documenting software licensing arrangements in the Malaysian business context.

What sections should be included in a Commercial Software License?

1. Parties: Identification of licensor and licensee with full legal names and addresses

2. Background: Context of the agreement, nature of software, and business relationship

3. Definitions: Defined terms used throughout the agreement

4. License Grant: Scope of license, permitted uses, and territory restrictions

5. License Restrictions: Prohibited activities and usage limitations

6. Fees and Payment: License fees, payment terms, taxes, and late payment consequences

7. Intellectual Property Rights: Ownership of IP, protection measures, and infringement procedures

8. Confidentiality: Protection of confidential information and trade secrets

9. Warranties and Disclaimers: Software warranties, performance guarantees, and limitations

10. Limitation of Liability: Caps on liability and excluded damages

11. Term and Termination: Duration, renewal terms, termination rights, and consequences

12. Post-Termination Obligations: Actions required after agreement ends

13. General Provisions: Standard legal clauses including governing law, notices, and assignment

What sections are optional to include in a Commercial Software License?

1. Implementation Services: Terms for software installation, configuration, and deployment services

2. Support and Maintenance: Terms for ongoing technical support and software updates

3. Service Levels: Performance metrics, availability commitments, and remedies

4. Data Protection: Compliance with PDPA and data handling requirements

5. Security Requirements: Security standards, audits, and breach notification procedures

6. Third-Party Components: Terms relating to third-party software or open-source components

7. Export Control: Compliance with export laws and restrictions

8. Disaster Recovery: Business continuity and disaster recovery obligations

What schedules should be included in a Commercial Software License?

1. Software Description: Technical specifications and functionality of the licensed software

2. License Fees: Detailed fee structure, payment schedules, and pricing terms

3. Service Level Agreement: Detailed performance metrics and service level commitments

4. Support Services: Description of support tiers, response times, and escalation procedures

5. Acceptable Use Policy: Detailed rules and guidelines for software usage

6. Security Requirements: Detailed security standards and compliance requirements

7. Data Processing Terms: Detailed data handling procedures and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions

































Clauses


























Relevant Industries

Technology

Financial Services

Healthcare

Manufacturing

Retail

Professional Services

Education

Telecommunications

Government

Energy

Construction

Transportation

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Commercial

Finance

Risk Management

Technical Operations

Software Development

Vendor Management

Relevant Roles

Chief Technology Officer

Legal Counsel

IT Director

Procurement Manager

Software Licensing Manager

Contract Manager

Information Security Officer

Compliance Officer

Commercial Director

Business Development Manager

Chief Information Officer

VP of Engineering

Technical Operations Manager

Risk Manager

Software Asset 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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