This On Premise Software License Agreement is designed for use in Malaysia when a software provider wishes to license their software product for installation and use on a customer's local infrastructure. The agreement is governed by Malaysian law and incorporates requirements from relevant Malaysian legislation, including intellectual property, data protection, and electronic commerce laws. It should be used when software is being licensed for installation on the licensee's systems rather than being provided as a cloud service. The document includes comprehensive provisions for license scope, usage rights, technical requirements, support services, and compliance obligations, while addressing specific Malaysian legal and regulatory requirements. This type of agreement is particularly important for businesses requiring control over their software infrastructure or when data sovereignty and security requirements necessitate on-premise deployment.
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1. Parties: Identification of the licensor and licensee with full legal names and addresses
2. Background: Context of the agreement, brief description of the software, and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement
4. License Grant: Scope of the software license, including usage rights and territory restrictions
5. License Restrictions: Specific prohibitions and limitations on use of the software
6. Delivery and Installation: Terms regarding software delivery, installation process, and acceptance criteria
7. License Fees: Payment terms, fee structure, and payment schedule
8. Intellectual Property Rights: Ownership of IP rights, protection measures, and infringement procedures
9. Confidentiality: Protection and handling of confidential information
10. Warranties and Representations: Software performance warranties and legal compliance representations
11. Limitation of Liability: Caps on liability and exclusions of certain types of damages
12. Term and Termination: Duration of agreement, renewal terms, and termination rights
13. Post-Termination Obligations: Actions required after agreement termination
14. General Provisions: Standard legal clauses including governing law, notices, and assignment
1. Data Protection: Required if the software processes personal data, ensuring compliance with PDPA 2010
2. Source Code Escrow: Optional protection for licensee through source code escrow arrangements
3. Professional Services: Include if additional implementation or consulting services are provided
4. Training: Include if training services are part of the agreement
5. Service Levels: Include if specific performance metrics are guaranteed
6. Disaster Recovery: Include for business-critical software implementations
7. Export Controls: Required if software is subject to export control regulations
8. Insurance: Include for high-value or high-risk implementations
1. Schedule 1 - Software Description: Detailed description of the licensed software, including versions and components
2. Schedule 2 - Technical Requirements: Hardware and software requirements for operating the software
3. Schedule 3 - License Fees: Detailed breakdown of license fees and payment schedule
4. Schedule 4 - Support and Maintenance: Terms and conditions for ongoing support and maintenance services
5. Schedule 5 - Service Levels: Detailed service level commitments and metrics
6. Schedule 6 - Implementation Plan: Timeline and milestones for software implementation
7. Appendix A - Authorized Users: Definition and list of authorized users or user categories
8. Appendix B - Acceptance Testing: Acceptance testing procedures and criteria
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