Tuesday

Please advice on the law and business of software development/distribution in Malaysia, Singapore, Indonesia and Philippines.


Statutory protection of Software
Computer programs are defined by Section 3 of the Copyright Act in Malaysia. Therefore, the distribution of software in Malaysia would fall within the definition of a ‘literary work’ and protected under Copyright.


The Malaysian Patents Act does not specifically define Software. However the examination system allows for reliance on allowance of corresponding claims in other countries. Modified examination is available where the applicant has obtained the grant of a parallel Australian, European, UK, Japanese, Korean or US patent.

As such, there is scope to rely on a software patent granted by the corresponding Patent Office as a basis to get the patent accepted under the modified examination route.

Software is protected by patents in accordance with the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs).





Further, Section 7 of the Singapore Copyright Act also defines Computer programs as literary works and are protectable under copyright.
Computer programs are protected and governed by Article 12(1)(a) of the Copyright Act (“CA”) in Indonesia.

Article 1 of the CA in Indonesia defines a computer program as a collection of instructions manifested in the form of a language, codes, diagrams, or any other forms, which when combined with media that can be read by computers will be able to make computers work to execute certain functions or to obtain specific results, including the preparation in designing the instructions.

Therefore, the distribution of software in Indonesia is governed by the laws of copyright, in that any person seeking to develop and distribute any software must have prior consent or a license from the original owner to use such software. (Article 2(2) CA)

The Intellectual Property Code of the Philippines protects;

a. Databases and tables.

b. It grants an exclusive rental right to the copyright owner.

c. It recognizes and expands the protection of an author’s “moral rights”.

d. That is, the right of an author to preserve the integrity of their works and their name.

e. It penalizes the possession of infringing software for the purposes of sale.


Statutory protection of Software and database
Copyright - The life of the author + 50 years after his death

Patent – 20 years

The life of the author + 70 years after his death

 Patent – 20 years
The life of the author + 50 years after his death
The life of the author + 50 years after his death
Shrink Wrap license
When a consumer purchases and uses shrink-wrapped software, it is usually considered that they have agreed to the terms of the licensing agreement in the package. Therefore, the license would be deemed binding on consumers in Malaysia. Although the agreement is not conclusive, it does carry a lot of weight in Malaysia's court of law.

In Singapore, Shrink wrap licenses are binding upon the consumer who purchases the software.
Shrink wrap licenses are binding in Indonesia provided they are fair and not misleading.
When a consumer purchases a legitimate copy of a computer program/software, you will receive a license agreement.
This agreement will tell you how you may use the computer program/software.
If you do anything with the computer program/software, which is not permitted under the license agreement (or the IP Code), then you will have breached the
Code and will be liable for the penalties.

Bulk License
An owner of the copyright of a software can assign his rights via a licensing agreement for the distribution of that software (Section 27 Copyright Act)

Under Section 34 and 38, an owner of a software patent may grant assign his/her rights or grant a compulsory license for the use and distribution of that software.
An owner of the copyright of a software can assign his rights via a licensing agreement for the distribution of that software.

Under Section 53, an owner of a software patent may grant assign his/her rights or grant a compulsory license for the use and distribution of that software.
The Copyright holder shall have the right to give a license to another party based on a licensing
agreement to carry out any distribution or development of the software.
A person may only copy, adapt or rent, distribute or develop a computer program/software program if the copyright owner gives you the permission to do this. This permission is given in the form of a license.

This license agreement will tell you how you may use the software. If you do anything with the software, which is not permitted under the license agreement, then you will have breached the Code and will be liable for the penalties.


For more information, contact us at: malaysia@mirandah.com 

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