Advertising Agency Contract Template for Malaysia

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Key Requirements PROMPT example:

Advertising Agency Contract

"I need an Advertising Agency Contract under Malaysian law for a digital marketing agency providing social media management and content creation services to a retail client, starting from January 2025, with specific provisions for performance metrics and success-based compensation."

Document background
The Advertising Agency Contract serves as the primary legal framework for establishing and managing the relationship between advertising agencies and their clients in Malaysia. This document is essential when engaging professional advertising services for marketing campaigns, brand development, and promotional activities. The contract comprehensively addresses service scope, creative rights, approval workflows, compensation structures, and compliance with Malaysian advertising regulations. It incorporates key provisions from relevant Malaysian legislation, including the Communications and Multimedia Act 1998, Trade Descriptions Act 2011, and Personal Data Protection Act 2010. The agreement is designed to protect both parties' interests while ensuring clear communication channels and performance expectations throughout the engagement.
Suggested Sections

1. Parties: Identifies and provides full details of the advertising agency and the client company

2. Background: Sets out the context of the agreement, including the client's need for advertising services and the agency's expertise

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Appointment and Scope of Services: Details the formal appointment of the agency and outlines the core advertising services to be provided

5. Agency Obligations: Specifies the agency's key responsibilities, service standards, and deliverables

6. Client Obligations: Outlines the client's responsibilities, including providing materials, approvals, and cooperation

7. Approval Process: Details the procedure for submitting, reviewing, and approving advertising materials

8. Fees and Payment Terms: Specifies the fee structure, payment schedule, and billing procedures

9. Intellectual Property Rights: Addresses ownership and licensing of creative works, existing IP, and developed materials

10. Confidentiality: Establishes obligations regarding confidential information protection

11. Term and Termination: Specifies the duration of the agreement and circumstances for termination

12. Warranties and Indemnities: Sets out warranties provided by both parties and indemnification obligations

13. Limitation of Liability: Defines the extent and limitations of each party's liability

14. Force Majeure: Addresses circumstances beyond parties' control affecting contract performance

15. General Provisions: Contains standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Digital Marketing Services: Detailed provisions for digital marketing services if included in the scope

2. Social Media Management: Specific terms for social media account management and content creation

3. Performance Metrics: KPIs and performance measurement criteria for campaigns

4. Third-Party Relationships: Terms governing relationships with subcontractors or third-party service providers

5. Data Protection: Detailed data protection provisions if handling personal data for targeted advertising

6. International Advertising: Additional provisions for cross-border advertising campaigns

7. Competition Restrictions: Non-compete and exclusivity provisions if applicable

8. Crisis Management: Procedures for handling advertising-related crises or controversies

9. Success Fees: Additional compensation based on campaign performance if applicable

Suggested Schedules

1. Schedule 1 - Scope of Services: Detailed breakdown of all advertising services to be provided

2. Schedule 2 - Fee Structure: Comprehensive fee schedule including rate cards and payment terms

3. Schedule 3 - Key Personnel: List of key agency team members assigned to the client's account

4. Schedule 4 - Service Level Agreement: Specific performance standards and response times

5. Schedule 5 - Brand Guidelines: Client's branding requirements and usage guidelines

6. Schedule 6 - Approval Matrix: Detailed workflow for approvals and decision-making authority

7. Appendix A - Campaign Brief Template: Standard template for campaign briefs and requirements

8. Appendix B - Reporting Templates: Templates for regular campaign performance reporting

Authors

Alex Denne

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

Clauses
Relevant Industries

Retail

Consumer Goods

Financial Services

Technology

Healthcare

Automotive

Real Estate

Food & Beverage

Entertainment

Education

Telecommunications

Travel & Tourism

Professional Services

Non-Profit Organizations

Relevant Teams

Legal

Marketing

Procurement

Finance

Brand Management

Corporate Communications

Digital Marketing

Compliance

Business Development

Creative Services

Media Planning

Account Management

Relevant Roles

Chief Marketing Officer

Marketing Director

Brand Manager

Procurement Manager

Legal Counsel

Advertising Director

Creative Director

Account Director

Media Planning Manager

Digital Marketing Manager

Communications Manager

Chief Financial Officer

Contract Manager

Compliance Officer

Business Development Director

Industries
Contracts Act 1950: Primary legislation governing contract formation, validity, and enforcement in Malaysia. Essential for establishing the basic contractual framework between the advertising agency and client.
Trade Descriptions Act 2011: Regulates false or misleading advertisements and trade descriptions. Crucial for ensuring advertising content compliance and preventing misleading commercial practices.
Copyright Act 1987: Protects creative works including advertising materials, designs, and content. Important for establishing IP ownership and usage rights in advertising campaigns.
Trademarks Act 2019: Governs the protection of trademarks and brand elements in advertising materials. Relevant for handling client's trademark usage and protection.
Personal Data Protection Act 2010: Regulates the collection and use of personal data in commercial activities, including advertising campaigns and customer targeting.
Communications and Multimedia Act 1998: Regulates content across various media platforms, including digital advertising and online content distribution.
Consumer Protection Act 1999: Provides protection for consumers against unfair practices, including misleading advertisements and representations.
Medicine (Advertisement and Sale) Act 1956: Specifically regulates advertising of medical products and services, relevant if the agency handles healthcare-related advertising.
Malaysian Code of Advertising Practice: Though not legislation, this industry code provides important guidelines for advertising standards and best practices in Malaysia.
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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