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Sponsorship Agency Agreement for Malaysia

Sponsorship Agency Agreement Template for Malaysia

This document establishes a legal framework for the relationship between a sponsor and a sponsorship agency under Malaysian law. It outlines the agency's authority to identify, negotiate, and manage sponsorship opportunities on behalf of the sponsor. The agreement covers essential elements including scope of services, compensation structures, intellectual property rights, and compliance with Malaysian advertising and commercial regulations. It incorporates specific provisions for brand protection, performance metrics, and risk management while ensuring alignment with Malaysian commercial law principles, including the Contracts Act 1950 and relevant advertising regulations.

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What is a Sponsorship Agency Agreement?

The Sponsorship Agency Agreement is essential for companies seeking to outsource their sponsorship activities to specialized agencies in Malaysia. This document is particularly relevant when a company wants to engage professional expertise for identifying, negotiating, and managing sponsorship opportunities while maintaining control over their brand and marketing investments. The agreement needs to comply with Malaysian commercial law, including the Contracts Act 1950, Trade Descriptions Act 2011, and relevant advertising regulations. It typically includes detailed provisions for service scope, compensation, approval processes, and performance metrics, while addressing specific requirements of the Malaysian market and legal framework. This type of agreement is commonly used by both local Malaysian companies and international organizations operating in the region who require professional sponsorship management services.

What sections should be included in a Sponsorship Agency Agreement?

1. Parties: Identification of the principal sponsor and the agency, including full legal names and registered addresses

2. Background: Context of the agreement, including the sponsor's objectives and the agency's expertise

3. Definitions: Key terms used throughout the agreement, including 'Sponsorship Properties', 'Territory', 'Sponsorship Rights', and 'Agency Services'

4. Appointment and Scope: Terms of the agency's appointment and the scope of their authority to act on behalf of the sponsor

5. Agency Services: Detailed description of services to be provided by the agency, including sponsorship identification, negotiation, and management

6. Agency's Obligations: Key responsibilities and commitments of the agency in delivering the services

7. Sponsor's Obligations: Key responsibilities of the sponsor, including provision of materials and approvals

8. Fees and Payment Terms: Agency fees, commission structures, and payment schedules

9. Intellectual Property Rights: Ownership and usage rights of sponsor's brands and other intellectual property

10. Confidentiality: Protection of confidential information exchanged during the relationship

11. Term and Termination: Duration of the agreement and circumstances for termination

12. General Provisions: Standard legal clauses including governing law, notices, and entire agreement

What sections are optional to include in a Sponsorship Agency Agreement?

1. Digital Rights Management: Specific provisions for managing digital and social media sponsorship rights, used when digital activation is a significant component

2. Event Management Services: Additional provisions for when the agency provides event management services beyond pure sponsorship

3. International Operations: Specific provisions for cross-border sponsorship activities, including compliance with local laws

4. Exclusivity Provisions: Detailed terms regarding exclusivity arrangements, used when the agency is granted exclusive rights

5. Crisis Management: Procedures for handling reputation issues or sponsorship-related crises

6. Performance Metrics: Specific KPIs and measurement criteria, used when performance-based compensation is included

What schedules should be included in a Sponsorship Agency Agreement?

1. Schedule 1 - Service Level Agreement: Detailed specifications of service levels and performance standards

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, commission rates, and payment calculations

3. Schedule 3 - Approved Sponsorship Categories: List of pre-approved categories or types of sponsorship opportunities

4. Schedule 4 - Reporting Requirements: Templates and specifications for regular reporting and evaluation

5. Schedule 5 - Brand Guidelines: Sponsor's brand usage guidelines and requirements

6. Appendix A - Authorization Matrix: Decision-making authority levels for different types of sponsorship decisions

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

Agency Agreement

Cost

Free to use
Relevant legal definitions


































Clauses



































Relevant Industries

Sports and Entertainment

Media and Broadcasting

Consumer Goods

Financial Services

Telecommunications

Automotive

Technology

Retail

Food and Beverage

Airlines and Travel

Professional Services

Energy and Utilities

Relevant Teams

Legal

Marketing

Brand Management

Commercial Operations

Procurement

Business Development

Corporate Communications

Finance

Compliance

Risk Management

Relevant Roles

Chief Marketing Officer

Marketing Director

Brand Manager

Sponsorship Manager

Legal Counsel

Commercial Director

Business Development Manager

Partnership Manager

Marketing Operations Manager

Procurement Manager

Contract Manager

Agency Relations Manager

Sports Marketing Manager

Events 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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