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A Trademark Use Agreement is essential when a trademark owner wishes to grant another party the right to use their trademark in Malaysia while maintaining control over their intellectual property. This document, governed by Malaysian law including the Trademarks Act 2019 and related regulations, establishes the framework for licensed trademark usage. It's particularly relevant in franchise operations, brand expansions, or when international companies enter the Malaysian market. The agreement details critical aspects such as usage rights, quality standards, financial terms, and enforcement mechanisms, while ensuring compliance with local legal requirements and business practices. It serves as a crucial tool for protecting intellectual property rights while enabling commercial exploitation of the trademark.

1. Parties: Identification of the trademark owner (Licensor) and the party being granted use rights (Licensee), including full legal names and registered addresses

2. Background: Context of the agreement, including details of trademark ownership and registration, and the purpose of the licensing arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Licensed Marks', 'Territory', 'Term', and 'Licensed Products/Services'

4. Grant of License: Specific rights being granted, including type of license (exclusive/non-exclusive), territory, and scope of permitted use

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances under which either party may terminate the agreement

6. Quality Control: Standards and specifications for use of the trademark, inspection rights, and approval processes for licensed products or services

7. Royalties and Payments: Financial terms including license fees, royalty rates, payment schedules, and reporting requirements

8. Representations and Warranties: Statements regarding trademark ownership, right to license, and other material facts

9. Protection of the Mark: Obligations regarding trademark protection, infringement reporting, and cooperation in enforcement

10. Confidentiality: Provisions for protecting confidential information exchanged during the agreement

11. General Provisions: Standard clauses including governing law, dispute resolution, notices, and amendment procedures