Licensing

Expert IP Licensing Solutions & Agreements in Malaysia

Introduction to IP Licensing in Malaysia

Licensing is one of the key ways to commercialize intellectual property (IP). Just like physical assets—such as houses—that can be sold or rented, intellectual property can also be licensed to others. This allows you to generate income from your IP without giving up ownership.

How Does IP Licensing Work in Malaysia?

IP licensing is governed by a contract between two parties:

Licensor – the owner of the intellectual property
Licensee – the person or company receiving the right to use the IP

Through a License Agreement, the Licensor grants the Licensee permission to use the IP under specific conditions. Without this legal agreement, any use of the IP could be considered an infringement.

What is in a Licensing Agreement?

A Licensing Agreement for intellectual property is similar to a tenancy agreement. It sets clear terms and conditions that both parties must follow. Common elements include:

Purpose of use – how the licensee can use the IP
Territory – where the license applies
Duration – how long the license is valid
Payment terms – usually a fixed fee, royalties, or both

In exchange for these rights, the licensor is compensated, often with a guaranteed fee or a percentage of revenue generated through the IP.

Types of IP Licenses

There are three main types of IP licenses:

Exclusive License
Only the Licensee can use the IP by excluding the use by others including the Licensor.
Non-Exclusive License
The Licensee can use the IP, but the Licensor retains the right to use and license it to others without contravening the terms of the agreement with the Licensee.
Sole License
The Licensee has exclusive rights, but the Licensor may also use the IP (no third parties allowed).

Benefits of IP Licensing

Licensing helps you maximize the value of your intellectual property. Key benefits include:

Expanding your brand presence in the market
Supporting and promoting core products or services
Associating your brand with new products that align with your brand values
Entering new markets without major investments
Creating additional revenue streams with minimal resources

Our IP Licensing Services

We assist both licensors and licensees by offering:

Advisory services to help you understand the basics of IP licensing
Drafting and preparation of license agreements based on finalized terms
Stamping services, if required for legal execution of the agreement