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Technology Development Agreement

Technology Development Agreement Template for Malaysia

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Key Requirements PROMPT example:

Technology Development Agreement

"I need a Technology Development Agreement for outsourcing the development of an AI-powered healthcare management system to a Malaysian software company, with specific focus on data privacy compliance and integration with existing hospital systems."

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Document background
The Technology Development Agreement is essential for businesses in Malaysia engaging external developers or technology companies to create custom software, systems, or technological solutions. This contract type is particularly crucial in today's digital economy where companies increasingly rely on custom technology solutions for competitive advantage. The agreement encompasses critical elements such as project scope, development methodology, intellectual property rights, confidentiality provisions, and acceptance testing procedures, all within the framework of Malaysian law. It provides necessary legal protection for both the developer and the client while ensuring clear documentation of deliverables, timelines, and commercial terms. The document is structured to comply with Malaysian legal requirements while incorporating international best practices in technology development contracting.
Suggested Sections

1. Parties: Identification and details of the contracting parties (technology developer and client)

2. Background: Context of the agreement, including the client's needs and developer's capabilities

3. Definitions: Defined terms used throughout the agreement

4. Scope of Development Services: Detailed description of the technology to be developed and development services to be provided

5. Project Phases and Timelines: Development stages, milestones, and delivery deadlines

6. Acceptance Testing: Procedures for testing and accepting deliverables

7. Payment Terms: Fees, payment schedule, and payment conditions

8. Intellectual Property Rights: Ownership and licensing of pre-existing and newly developed IP

9. Confidentiality: Protection of confidential information and trade secrets

10. Warranties and Representations: Guarantees regarding services, deliverables, and authority to contract

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

12. Term and Termination: Duration of agreement and termination rights

13. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Source Code Escrow: Provisions for source code deposit with an escrow agent, used when client requires security of access to source code

2. Third-Party Components: Provisions regarding use and licensing of third-party software or components, included when solution involves third-party elements

3. Data Protection: Specific data handling and protection obligations, required when personal data processing is involved

4. Change Control: Procedures for managing changes to project scope or specifications, useful for complex or long-term projects

5. Knowledge Transfer: Provisions for training and knowledge sharing, important when client's team needs to maintain or operate the technology

6. Service Level Agreement: Performance standards and metrics, included when ongoing performance requirements are necessary

7. Security Requirements: Specific security standards and compliance requirements, needed for sensitive or regulated projects

8. Disaster Recovery: Business continuity and disaster recovery obligations, important for mission-critical systems

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for the technology to be developed

2. Project Plan: Detailed timeline, resources, and methodology for the development process

3. Pricing Schedule: Detailed breakdown of fees, costs, and payment milestones

4. Acceptance Criteria: Specific criteria and test cases for accepting deliverables

5. Service Levels: Detailed performance metrics and service level requirements

6. Personnel: Key personnel assigned to the project and their roles

7. Background IP: List of pre-existing intellectual property to be used in the project

8. Third-Party Licenses: Details of third-party software licenses and components to be used

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 legal definitions
Acceptance Criteria
Acceptance Tests
Background Intellectual Property
Business Day
Change Request
Commencement Date
Confidential Information
Deliverables
Development Environment
Development Methodology
Documentation
Effective Date
Final Acceptance
Foreground Intellectual Property
Implementation Schedule
Intellectual Property Rights
Milestone
Project
Project Manager
Project Plan
Services
Source Code
Specifications
Technical Requirements
Technology
Term
Test Environment
Third Party Components
User Acceptance Testing
Work Product
Clauses
Interpretation
Scope of Services
Project Management
Development Methodology
Acceptance Testing
Change Control
Payment Terms
Intellectual Property Rights
Confidentiality
Data Protection
Warranties
Indemnification
Limitation of Liability
Force Majeure
Term and Termination
Exit Management
Assignment
Subcontracting
Dispute Resolution
Governing Law
Notices
Insurance
Audit Rights
Service Levels
Security Requirements
Compliance with Laws
Personnel
Source Code Escrow
Third Party Rights
Entire Agreement
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Telecommunications

Education

Government

Retail

Logistics

Entertainment

Energy

Relevant Teams

Legal

Information Technology

Procurement

Operations

Project Management

Risk and Compliance

Finance

Research and Development

Digital Innovation

Product Development

Commercial

Relevant Roles

Chief Technology Officer

Head of Legal

IT Director

Project Manager

Contract Manager

Legal Counsel

Technology Procurement Manager

Software Development Manager

Chief Information Officer

Innovation Director

Digital Transformation Manager

IT Procurement Specialist

Legal Operations Manager

Commercial Director

Industries
Contracts Act 1950: Primary legislation governing contract formation, validity, and enforcement in Malaysia. Essential for ensuring the agreement meets basic contractual requirements.
Patents Act 1983: Regulates patent protection for inventions in Malaysia. Crucial for protecting any patentable technological innovations developed under the agreement.
Copyright Act 1987: Governs copyright protection, particularly relevant for software code, documentation, and other original works created during development.
Industrial Designs Act 1996: Protects the visual design of articles, important if the technology development includes design elements.
Personal Data Protection Act 2010: Regulates the collection and handling of personal data, crucial if the technology involves data collection or processing.
Electronic Commerce Act 2006: Relevant for electronic transactions and digital signatures that may be part of the technology development process.
Communications and Multimedia Act 1998: Regulates communications and multimedia activities, important if the technology involves telecommunications or online services.
Employment Act 1955: Relevant for provisions relating to developers and technical staff involved in the project, particularly regarding intellectual property rights created by employees.
Trade Secrets Act 2021: Protects confidential business information and trade secrets, crucial for safeguarding proprietary technology and development processes.
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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