Copyright Licence Agreement (Malaysia)
COPYRIGHT LICENCE AGREEMENT
This Copyright Licence Agreement is made on [Agreement Date]
BETWEEN
[Licensor Name] (MyKad/SSM No. [Licensor IC/Registration]) ('Licensor')
AND
[Licensee Name] (SSM No. [Licensee Registration]) ('Licensee')
BACKGROUND
The Licensor is the owner of copyright in the works described in this agreement ('Licensed Works'). The Licensor wishes to grant and the Licensee wishes to obtain a licence to use the Licensed Works on the terms set out in this agreement, pursuant to the Copyright Act 1987 (Act 332) of Malaysia.
1. LICENSED WORKS
Type of work: [Work Type]
Description: [Work Description]
2. GRANT OF LICENCE
The Licensor grants to the Licensee a [Licence Type] licence to perform the following acts in relation to the Licensed Works: [Licensed Acts]
Licensed territory: [Licensed Territory]
Licence term: [Licence Term]
The Licensee must not exercise any rights not expressly granted above. All rights not expressly granted are reserved by the Licensor.
3. ROYALTIES AND PAYMENT
In consideration of the licence granted under this agreement, the Licensee shall pay the Licensor: [Royalty Structure]
All payments shall be made in Malaysian Ringgit (RM). The Licensee is responsible for any withholding tax obligations under Section 109 of the Income Tax Act 1967 applicable to royalty payments to non-resident licensors.
4. MORAL RIGHTS
Moral rights waiver: [Moral Rights Waiver]. To the extent permitted by law under Section 25A of the Copyright Act 1987, the author of the Licensed Works waives all moral rights (right of paternity and right of integrity) in relation to the Licensee's use of the Licensed Works under this licence, if a waiver has been agreed above.
Attribution required: [Attribution Required]. If attribution is required, the Licensee shall credit the Licensor as the author or rights owner in each use of the Licensed Works in a form agreed in writing by the parties.
5. LICENSOR WARRANTIES
The Licensor warrants that: (a) it is the sole owner of copyright in the Licensed Works or has full authority to grant this licence; (b) the Licensed Works do not infringe the copyright, moral rights, or other intellectual property rights of any third party; (c) the Licensor has not granted any licence or right to any third party that would conflict with this agreement.
The Licensor indemnifies the Licensee against all losses, claims, and costs arising from any breach of these warranties.
6. TERMINATION
Either party may terminate this agreement on 30 days' written notice for material breach that is not remedied within the notice period. The Licensor may terminate immediately if the Licensee uses the Licensed Works outside the scope of the licence, fails to pay royalties, or challenges the Licensor's ownership of copyright.
On termination, the Licensee shall immediately cease all use of the Licensed Works and destroy or return all copies, unless otherwise agreed in writing.
7. GOVERNING LAW
This agreement is governed by the laws of Malaysia. Disputes shall be referred to the courts of Malaysia or, by mutual written agreement, to arbitration under the rules of the Asian International Arbitration Centre (AIAC), Kuala Lumpur.
Licensor
________________
Signature
Licensee
________________
Signature
What Is a Copyright Licence Agreement (Malaysia)?
A Copyright Licence Agreement in Malaysia grants defined rights to use the licensed subject matter on the terms it specifies.
Copyright in Malaysia protects original literary works (including computer programs and databases), musical works, artistic works (including photographs, drawings, and sculptures), films, sound recordings, broadcasts, and published editions of literary, musical, or artistic works. Copyright arises automatically upon creation of an original work — there is no registration requirement or system under Malaysian law. Copyright protection lasts for the life of the author plus fifty years for most works under Section 17 of the Copyright Act 1987, or fifty years from publication for films, sound recordings, and broadcasts.
Under Section 25 of the Copyright Act 1987, copyright in a work may be assigned or licensed. A licence to use a copyright work must be in writing and signed by or on behalf of the licensor to be effective as a binding agreement — an oral licence may create equitable rights but is difficult to enforce. Unlike trademark licences, copyright licences do not need to be registered at any government registry — the Copyright Act 1987 does not provide for recordal of copyright licences at MyIPO or any other body.
Copyright licences may be exclusive or non-exclusive. An exclusive copyright licence grants the licensee the sole right to exercise specified rights in the work in the licensed territory, to the exclusion of all others including the licensor. A non-exclusive licence permits the licensee to use the work alongside other licensees. Under Section 26A of the Copyright Act 1987 (as introduced by the Copyright (Amendment) Act 2012), an exclusive licensee may bring infringement proceedings in their own name, joining the licensor as a defendant if necessary.
Moral rights are a distinct category of rights under the Copyright Act 1987. Under Section 25A, the author of a copyright work has the right to be identified as the author (right of paternity) and the right to object to derogatory treatment of the work that harms the author's honour or reputation (right of integrity). Moral rights cannot be assigned but can be waived by written agreement.
The legal framework governing the Copyright Licence Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Copyright Licence Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a Copyright Licence Agreement (Malaysia)?
A Copyright Licence Agreement is needed whenever a copyright owner grants another party permission to use, reproduce, distribute, adapt, or publicly communicate a copyright work in Malaysia.
A Copyright Licence Agreement is required for software licensing — when a software developer or technology company licenses its software to users, customers, or distributors. A software licence agreement is a copyright licence — without a written licence, the licensee has no legal right to use, install, or copy the software.
A Copyright Licence Agreement is needed for content licensing — when a publisher, media company, website operator, or marketing agency licenses written content, photographs, illustrations, graphics, videos, or music from the creator or a stock content provider for specific uses.
A Copyright Licence Agreement is required for music licensing — when a business wishes to use recorded music in a commercial context, such as in a retail outlet, restaurant, event, advertisement, or film production. In Malaysia, music licensing for public performance is administered by Music Authors' Copyright Protection Berhad (MACP) and Recording Industry Association of Malaysia (RIM/PRISM).
A Copyright Licence Agreement is needed for database licensing — when a data provider grants a business access to a proprietary database, directory, or data feed under specified terms, including restrictions on redistribution and competitive use.
A Copyright Licence Agreement is required for academic, educational, or research licensing — when a university or research institution wishes to commercialise research outputs, academic publications, or educational content by licensing them to publishers, industry partners, or online learning platforms.
Parties in Malaysia should prepare a Copyright Licence Agreement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Copyright Licence Agreement (Malaysia)
A thorough Copyright Licence Agreement for Malaysian transactions must include the following essential elements.
Identification of the Licensed Works: A precise description of each copyright work being licensed, including the title, type of work (literary, artistic, musical, film, sound recording, software), author or creator, and date of creation. For software, identify the program name, version, and platform. For databases, identify the database name, scope, and update schedule.
Licensed Acts: The specific copyright acts the licensee is permitted to perform — reproduction, distribution, public performance, communication to the public, adaptation, translation, or any combination. The licence should be limited to the acts actually needed for the licensed purpose.
Exclusive or Non-Exclusive: Whether the licence is exclusive (sole licensee for specified acts in the territory) or non-exclusive (multiple licensees may be granted). Exclusive licences should specify whether the licensor is also excluded.
Licensed Territory and Duration: The geographic scope (Malaysia, Southeast Asia, worldwide) and the term of the licence (fixed period, perpetual, or tied to a project or event).
Royalties and Payment Terms: The royalty or licence fee — whether a lump sum, per-unit royalty, percentage of revenue, or subscription fee. Payment terms including currency (Malaysian Ringgit, RM), invoicing, and withholding tax responsibilities.
Moral Rights: A waiver by the author of moral rights under Section 25A of the Copyright Act 1987, if required by the licensee's intended use — particularly for adaptations, translations, or commercial uses where the author's credit may not be practical.
Restrictions on Use: Specific restrictions on how the licensee may not use the work — including no sub-licensing without consent, no modification beyond agreed parameters, no use outside the licensed territory, and no use after the licence term expires.
Warranties by the Licensor: Representations that the licensor owns or controls the copyright, that the work does not infringe third-party rights, and that the licensor has authority to grant the licence.
Termination Rights: Circumstances for termination, obligations on termination (destruction or return of materials), and survival of payment obligations.
Additional compliance elements for a Copyright Licence Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Copyright Licence Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/intellectual-property/copyright-licence-agreement-malaysia
"Copyright Licence Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/intellectual-property/copyright-licence-agreement-malaysia.
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author = {{Forms Legal}},
title = {Copyright Licence Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/intellectual-property/copyright-licence-agreement-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}
Frequently Asked Questions
No. Copyright in Malaysia arises automatically upon the creation of an original work — there is no copyright registration system and no requirement to register with MyIPO or any other body. Under Section 10 of the Copyright Act 1987 (Act 332), copyright subsists in an original literary work, musical work, artistic work, film, sound recording, or broadcast as soon as it is created in material form, provided the author is a Malaysian citizen or permanent resident, or the work is first published in Malaysia. The absence of a registration system means that ownership disputes must be resolved by documentary evidence — such as drafts, emails, commission agreements, employment contracts, and payment records. This makes a written Copyright Licence Agreement particularly important, as it constitutes written evidence of the licensor's ownership and the agreed terms of use. While copyright registration is not available in Malaysia, authors and rights owners may voluntarily file a declaration of copyright with MyIPO under the Voluntary Notification System for Copyright Works as a practical measure to create a timestamp of the claimed ownership — though this notification has no legal effect in creating or confirming copyright.
Moral rights under Section 25A of the Copyright Act 1987 (as introduced by the Copyright (Amendment) Act 2012) are personal rights of the author that exist independently of copyright and are not transferable by assignment. Malaysian law recognises two moral rights: the right of paternity — the right of the author to be identified as the author of the work when the work is published, performed, broadcast, exhibited, or adapted; and the right of integrity — the right of the author to object to any derogatory treatment of the work that is prejudicial to the author's honour or reputation. Unlike copyright, moral rights cannot be assigned. However, they can be waived by the author in writing. A Copyright Licence Agreement for commercial purposes — particularly for software, advertising content, or commissioned works that will be adapted or rebranded — typically includes a waiver of moral rights by the author, to allow the licensee to use the work without attributing authorship and to make adaptations without the author's approval. The waiver may be general or limited to specified acts, territories, or periods.
Copyright protection in Malaysia under the Copyright Act 1987 (Act 332) lasts for varying periods depending on the type of work. For literary, musical, and artistic works (including photographs), copyright lasts for the life of the author plus fifty years from the end of the calendar year in which the author dies, under Section 17. For works of joint authorship, the fifty-year period runs from the death of the last surviving author. For anonymous or pseudonymous works, copyright lasts for fifty years from the end of the year in which the work was first published. For films, copyright lasts for fifty years from the end of the year in which the film was first published. For sound recordings, copyright lasts for fifty years from the end of the year in which the recording was first published. For broadcasts, copyright lasts for fifty years from the end of the year in which the broadcast was first made. For published editions (typographic copyright), copyright lasts for twenty-five years from the end of the year in which the edition was first published. Copyright in computer programs is treated as a literary work and lasts for the life of the author (or the human creator) plus fifty years.
Copyright royalty payments from a Malaysian company to a non-resident licensor are subject to withholding tax under Section 109 of the Income Tax Act 1967 (Act 53). The standard withholding tax rate on royalties paid to non-resident individuals and companies is 10% of the gross royalty payment. The Malaysian payer (the licensee) is responsible for deducting the withholding tax before remitting the royalty to the non-resident licensor, and for remitting the withheld amount to the Inland Revenue Board (LHDN) within one month of the royalty payment becoming due. Where a Double Taxation Agreement (DTA) exists between Malaysia and the country of residence of the non-resident licensor — Malaysia has DTAs with over 70 countries — the DTA may provide for a reduced withholding tax rate on royalties, often between 0% and 10%. To benefit from the reduced DTA rate, the non-resident licensor must submit a completed DTA claim form to LHDN. Software licence fees paid to non-residents are generally treated as royalties for Malaysian withholding tax purposes, including both payments for the use of software and for technical services associated with software use.
A copyright licensee in Malaysia may only adapt or modify the licensed work if the Copyright Licence Agreement expressly grants an adaptation right. Under Section 13(1)(b) of the Copyright Act 1987, the right to make an adaptation of a copyright work — including translating a literary work, arranging or transcribing a musical work, converting a dramatic work into a non-dramatic work, or creating a derivative software version — is an exclusive right of the copyright owner. A licence that grants only reproduction and distribution rights does not include adaptation rights. If the licensee needs to translate, modify, customise, or create derivative works from the licensed material, the licence must expressly include the right to make adaptations. Additionally, the licensor's moral right of integrity under Section 25A of the Copyright Act 1987 means that even if an adaptation right is granted, the author may object to any derogatory treatment of the work. For this reason, commercial copyright licences that include adaptation rights typically also include a written waiver of the author's moral rights to the extent necessary for the intended adaptations.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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