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Permanent Software License Template for Malaysia

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Key Requirements PROMPT example:

Permanent Software License

"I need a Permanent Software License agreement for my accounting software that will be licensed to a Malaysian manufacturing company, with the license fee to be paid in three installments and deployment scheduled for March 2025."

Document background
This Permanent Software License agreement is designed for use in Malaysia when a software provider grants a perpetual, non-revocable license to a customer. It is particularly relevant when organizations need to establish long-term software usage rights without subscription-based or time-limited restrictions. The document incorporates requirements from Malaysian legislation, including the Copyright Act 1987, Contracts Act 1950, and Electronic Commerce Act 2006. It covers essential elements such as license scope, usage restrictions, intellectual property protection, warranties, and liability limitations. This agreement type is commonly used for enterprise software implementations, custom-developed solutions, or when organizations prefer ownership-like rights rather than subscription-based access.
Suggested Sections

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

2. Background: Context of the agreement and brief description of the software product

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. License Grant: Scope and nature of the permanent license, including permitted uses and users

5. License Restrictions: Specific prohibitions and limitations on use of the software

6. Intellectual Property Rights: Assertion of ownership and protection of IP rights in the software

7. Delivery and Installation: Terms for software delivery, installation requirements and acceptance criteria

8. Fees and Payment: One-time license fee, payment terms and any additional charges

9. Warranties: Software performance warranties and disclaimers

10. Limitation of Liability: Caps on liability and exclusions of certain types of damages

11. Confidentiality: Protection of confidential information exchanged under the agreement

12. Term and Termination: Duration of the agreement and grounds for termination despite permanent license

13. Governing Law and Jurisdiction: Application of Malaysian law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including assignment, severability, and entire agreement

Optional Sections

1. Maintenance and Support: Optional terms for ongoing support and maintenance services, if offered

2. Third-Party Components: Terms relating to third-party software components, if any are included

3. Data Protection: Compliance with PDPA 2010 if software processes personal data

4. Export Controls: If software is subject to export regulations

5. Source Code Escrow: Terms for source code escrow if agreed between parties

6. Training: Terms for user training if included in the agreement

7. Audit Rights: Right to audit licensee's use of software if required

8. Insurance: Insurance requirements if specific coverage is needed

Suggested Schedules

1. Schedule 1 - Software Description: Detailed technical specifications and functionality of the software

2. Schedule 2 - License Fee: Detailed breakdown of the one-time license fee and payment schedule

3. Schedule 3 - Minimum System Requirements: Technical requirements for operating the software

4. Schedule 4 - Acceptance Testing: Acceptance testing procedures and criteria

5. Schedule 5 - Support Services: Details of any support services if included

6. Schedule 6 - Authorized Users: List of authorized users or user categories if license is restricted

7. Appendix A - Third-Party Licenses: Copies of relevant third-party software licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses


































Relevant Industries

Technology

Software Development

Information Technology Services

Enterprise Software

Financial Services

Healthcare

Manufacturing

Retail

Education

Government

Telecommunications

Professional Services

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Risk Management

Software Development

Information Security

Operations

Finance

Strategic Planning

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Legal Counsel

Procurement Manager

Contract Manager

Information Security Officer

Chief Information Officer

Technology Procurement Specialist

Software Asset Manager

Corporate Counsel

Compliance Officer

Enterprise Architect

IT Operations Manager

Risk 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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