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Confidentiality Agreement Between Two Companies

Confidentiality Agreement Between Two Companies Template for Malaysia

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Key Requirements PROMPT example:

Confidentiality Agreement Between Two Companies

"I need a Confidentiality Agreement Between Two Companies in Malaysia for a software development partnership, where my tech company will be sharing proprietary code and development methodologies with a potential manufacturing partner, with the agreement to be effective from March 1, 2025."

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Document background
In today's business environment, companies frequently need to share sensitive information while exploring potential business relationships or collaborations. A Confidentiality Agreement Between Two Companies serves as a crucial legal safeguard when businesses need to exchange proprietary information, trade secrets, or sensitive data. This document, governed by Malaysian law, establishes clear obligations and rights for both parties, ensuring that confidential information is properly protected and used only for specified purposes. It is particularly relevant for business negotiations, due diligence processes, joint ventures, and other commercial arrangements where proprietary information needs to be shared while maintaining its confidential nature. The agreement incorporates requirements from relevant Malaysian legislation, including the Contracts Act 1950 and Personal Data Protection Act 2010, making it suitable for use in the Malaysian business context.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the purpose of sharing confidential information and the relationship between the parties

3. Definitions: Detailed definitions of key terms, especially 'Confidential Information', 'Representatives', 'Permitted Purpose'

4. Confidentiality Obligations: Core obligations regarding the protection and non-disclosure of confidential information

5. Permitted Use and Disclosure: Specified circumstances under which confidential information may be used or disclosed

6. Security Measures: Required measures to protect confidential information from unauthorized access or disclosure

7. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information upon termination or request

8. Term and Survival: Duration of the agreement and provisions that survive termination

9. Breach and Remedies: Consequences of breach and available remedies including injunctive relief

10. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments

Optional Sections

1. Data Protection Compliance: Additional provisions for compliance with PDPA 2010 when personal data is involved

2. Intellectual Property Rights: Clarification of IP ownership and rights when confidential information includes IP

3. Non-Solicitation: Restrictions on soliciting employees or customers, if relevant to the business relationship

4. Export Control: Compliance with export control laws if confidential information includes controlled technology

5. Reverse Engineering: Specific prohibitions on reverse engineering when technical information is shared

6. Publicity and Announcements: Restrictions on public announcements about the relationship

7. Insurance Requirements: Obligations to maintain specific insurance coverage for confidential information

Suggested Schedules

1. Schedule 1 - Description of Confidential Information: Detailed list or categories of information considered confidential

2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information

3. Schedule 3 - Security Protocols: Specific security measures and protocols to be followed

4. Schedule 4 - Permitted Purpose: Detailed description of the permitted use of confidential information

5. Appendix A - Form of Acknowledgment: Template for representatives to acknowledge confidentiality obligations

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Technology and Software

Manufacturing

Healthcare and Pharmaceuticals

Financial Services

Professional Services

Energy and Resources

Real Estate and Construction

Telecommunications

Retail and Consumer Goods

Education and Research

Biotechnology

Automotive

Relevant Teams

Legal

Compliance

Executive Leadership

Business Development

Research and Development

Information Technology

Finance

Operations

Human Resources

Risk Management

Corporate Secretariat

Innovation

Commercial

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Compliance Officer

Business Development Manager

Project Manager

Research and Development Director

Chief Technology Officer

Chief Financial Officer

Operations Manager

Corporate Secretary

Risk Manager

Innovation Director

Commercial Manager

Human Resources Director

Industries
Contracts Act 1950: The primary legislation governing contract formation and enforcement in Malaysia, essential for ensuring the NDA is legally binding and enforceable
Personal Data Protection Act 2010: Regulates the processing of personal data in commercial transactions, relevant if the confidential information includes personal data
Patents Act 1983: Important if the confidential information includes patentable innovations or inventions that need protection
Copyright Act 1987: Relevant when the confidential information includes copyrightable materials such as software, documents, or creative works
Trade Descriptions Act 2011: May be relevant when dealing with confidential trade information and commercial secrets
Electronic Commerce Act 2006: Relevant if the agreement will be executed electronically or if it covers electronic data and communications
Common Law principles on Confidentiality: Malaysian courts recognize common law principles regarding breach of confidence and trade secrets protection
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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