The bill removes the current system of registered users and replaces it with a licensing system that does not require registration. Although the draft law does not impose explicit restrictions on the power of trade mark proprietors to issue licences, it is clear from Article 46(1)(d) that the lack of control by the trade mark proprietor over the use of the trade mark by its licensee may render the trade mark misleading and revocable. In this context, trade mark proprietors must continue to exercise quality control over the licensed goods and services, in order to ensure that there is no confusion and deception as to the origin of the goods and services without which they can make the mark revocable. In the global environment, a formal licensing agreement is conceivable precisely when the intellectual property you wish to authorize is additionally insured in other nations or nations of enthusiasm for you. If your intellectual property is not protected in those other countries or nations, you may not have the option to authorize it and you may not have the legitimate right to restrict its use by another person. It is based on a contractual agreement between the owner of the property (the licensor) and the person who wishes to acquire the license (the licensee). A license agreement is a contract in which the licensor grants the licensee permission to use its intellectual property within the limits set by the terms of the agreement. In the absence of such an agreement, the use of intellectual property would be an infringement. 3. Recognising trade marks as a form of guarantee An exclusive licence may provide that the exclusive licensee has the same rights and remedies as if the licence were an assignment (Article 71(1)). Where such a provision is adopted, the exclusive licensee shall have the right to initiate infringement proceedings against any person other than its holder in his own name and shall at the same time have rights and remedies with his holder. In all three agreements, a significant restriction was imposed on the defendant; it could only market the products in question within Malaysia and Singapore and the export of the goods outside those two countries was strictly prohibited.
The bill also provides that a license is binding on a successor in the interest of the licensor, with the exception of a bona bona bona party who has paid valuable consideration for the interest without notice of the license or unless the license provides otherwise. . . .