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Subscription License Agreement Template for Malaysia

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Key Requirements PROMPT example:

Subscription License Agreement

"I need a Subscription License Agreement under Malaysian law for my SaaS company that provides AI-powered analytics software to enterprise customers, with specific focus on data protection and service level guarantees."

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What is a Subscription License Agreement?

The Subscription License Agreement is a vital legal instrument used when establishing a recurring service relationship between a provider and subscriber in Malaysia. This agreement type is particularly relevant in today's digital economy where software, content, and services are increasingly provided on a subscription basis rather than through perpetual licenses. The document addresses key aspects required under Malaysian law, including electronic commerce regulations, data protection requirements, and consumer protection provisions where applicable. It establishes the legal framework for subscription services, covering essential elements such as service delivery, payment terms, usage rights, and service level commitments. The agreement is structured to comply with Malaysian legislation while providing flexibility to accommodate various business models and service types. It's particularly important for technology companies, SaaS providers, and digital service providers operating in or serving customers in Malaysia.

What sections should be included in a Subscription License Agreement?

1. Parties: Identifies the licensor and licensee with their full legal names and registered addresses

2. Background: Explains the context of the agreement, including the nature of the subscription service and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Grant of License: Specifies the scope, nature, and limitations of the license being granted

5. Subscription Terms: Details the duration, renewal, and termination conditions of the subscription

6. Fees and Payment: Outlines the pricing structure, payment terms, and billing procedures

7. User Access and Restrictions: Specifies permitted uses, user limitations, and prohibited activities

8. Intellectual Property Rights: Establishes ownership and protection of IP rights

9. Data Protection and Privacy: Addresses handling of personal data and privacy compliance

10. Confidentiality: Defines confidential information and obligations regarding its protection

11. Warranties and Disclaimers: States the warranties provided and limitations thereof

12. Limitation of Liability: Sets out the extent and limitations of each party's liability

13. Termination: Details grounds for termination and post-termination obligations

14. General Provisions: Includes standard boilerplate clauses such as notices, assignment, and governing law

What sections are optional to include in a Subscription License Agreement?

1. Service Level Agreement: Include when specific performance metrics and service levels need to be guaranteed

2. Professional Services: Include when additional implementation, training, or support services are provided

3. Security Requirements: Include when specific security standards or certifications must be maintained

4. Disaster Recovery: Include when business continuity and disaster recovery procedures are critical

5. Third-Party Terms: Include when third-party software or services are incorporated

6. Export Control: Include when the service may be subject to international trade restrictions

7. Insurance Requirements: Include when specific insurance coverage needs to be maintained

8. Audit Rights: Include when usage monitoring and audit provisions are necessary

What schedules should be included in a Subscription License Agreement?

1. Schedule 1 - Service Description: Detailed description of the subscription service and its features

2. Schedule 2 - Service Levels: Specific performance metrics, uptime guarantees, and support levels

3. Schedule 3 - Fee Schedule: Detailed pricing structure, including different tiers and optional features

4. Schedule 4 - Technical Requirements: Technical specifications and requirements for using the service

5. Schedule 5 - Data Processing Agreement: Detailed terms for personal data processing in compliance with privacy laws

6. Schedule 6 - Acceptable Use Policy: Detailed rules and restrictions for service usage

7. Appendix A - Contact Information: Key contacts for both parties for various purposes

Authors

Alex Denne

Head of Growth (Open Source Law)