There are countless of businesses today that depend on cloud-based software for everyday operations. In spite of the frequent use, recent news of data breaches shed light on the potential vulnerability of all software systems. With this, every software developer should make sure that they have an agreement in place that is strong and well drafted. These agreements will not only protect a software developer’s legal responsibilities but will also include matters such as subscription licensing of the program. This article will briefly explain important elements to know about a software as a service agreement and what important clauses the agreement should include.

Defining the Elements Within an Agreement

SaaS agreements are used to identify a licensing requirement, term of service, or other legal term to a client of software as a service company. It is an agreement that demands serious undertaking and should require careful thought and consideration. Once in place, the agreement can eliminate any future dilemmas associated with more ordinary licensing models.

A SaaS agreement is a simple way to present legal documents to service users all at once. Frequently used segments of an agreement can include the following:

• Privacy policy,
• Disclaimers,
• Terms and conditions,
• Terms of service, or
• All other conditions the company would want to include

A SaaS agreement is essentially a contract between a software developer and a user and it will provide an online reference for all parties to use.

Important Things to Know About SaaS Agreements

A SaaS agreement is different from other routinely used software agreements because other agreements usually demand a large upfront payment for licensing. An updating process is also simplified by the use of a SaaS agreement. Under SaaS platforms, users are essentially subscribing to the software and their work will usually be saved into a cloud. Terms of use will usually involve monthly subscriptions, with the agreement being renewed after every monthly payment.

SaaS agreements will usually blend the elements of a service level agreement, privacy policy, or other legal documents. Generally covered topics could include the following:

• Restrictions and limitations
• Terms of use
• Billing agreements
• Billing policies
• Warranties and protections

SaaS agreements are usually more wide-ranging than terms of service agreement since SaaS agreements cover more conditions that regulate cloud and SaaS amenities.

Obtain the Legal Support of a Qualified Attorney

SaaS agreements are designed to be comprehensive documents and as a result, software providers are recommended to pay close attention to the various compounds in the agreements that identify liability and/or obligations. Failing to include a well-defined clause can be crucial and can also present legal implications that could put an entire business at risk. Other consequences can lead to a tarnished reputation or otherwise have negative results on existing commercial relationships. If you are seeking to draft a strong SaaS form, speak to a qualified IT attorney who can assist you.

Attorney John O’Brien is an IT lawyer who specializes in SaaS agreements. Attorney O’Biren understands the rapid and ongoing growth of IT law. With his experience and knowledge of IT law, attorney O’Brien will work diligently to ensure that all of the necessities of his clients are met when entering into a technology-based contract.