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The Option To License Agreement is a strategic document used when parties wish to secure future licensing rights while maintaining flexibility in their commercial arrangements. This agreement type is particularly valuable in the Malaysian business context where companies need time to evaluate intellectual property assets, conduct due diligence, or secure necessary funding before committing to a full license agreement. It provides a structured framework under Malaysian law that protects both the option grantor's intellectual property rights and the option holder's future interests. The agreement typically includes detailed provisions about the option period, exercise price, evaluation rights, and the key terms of the potential license, while ensuring compliance with Malaysian intellectual property laws, competition regulations, and commercial legislation. This document is especially relevant in technology transfers, research commercialization, and strategic business partnerships where parties need a secure but flexible arrangement for future licensing opportunities.
