Software-as-a-service (“SaaS”) is, of course, very different from software-as-a-product. The latter is downloaded or comes on a disk in a box, comes with a licensing agreement, mostly involves a one-time payment, and is installed and hosted on the users’ networks and computers. SaaS, on the other hand, is a web-hosted software solution offered on a subscription model, comes with a service contract, generally involves monthly access charges, and the software is hosted on the servers of the service provider with limited or no software hosted on the user’s computer system. There are, of course, many market segments that offer related software as both. Video game developers, for example, offer the basic software and features of the game as a product, but if the game is developed as a multiplayer, interactive, over-the-net game experience, that aspect is SaaS.
Because SaaS is very different from software-as-a-product, companies that offer SaaS need lawyers with specific and deep SaaS experience. For example, with the basic service agreement, there are many, many legal issues that must be negotiated and agreed upon. Thus, an SaaS service agreement must have a wealth of key provisions These include:
- Details of services to be provided, including issues like implementation, testing, and acceptance by the user
- Training and support by the service provider
- Mutual terms of cooperation
- Issues with respect to business interruption, continuity, disaster recovery, etc.
- Invoicing, payments, and audits
- Provisions related to limited use, non-sharing of access codes, excessive and/or unauthorized use
- Payment of sales and use taxes
- Termination and default provisions
- Ownership of data present on the provider’s network or system
- Any obligations upon termination, such as transition assistance
- Cyber-security measures by each party; breach and attempted breach notification provisions
- Mutual confidentiality and non-disclosure issues
- Provider’s on-site and remote access user’s system and/or data storage
- Intellectual property issues, including ownership and non-infringement
- Compliance with relevant laws and regulations like consumer privacy statutes, HIPAA, COPPA, etc.
- Limitations of liability
- Assignment or use of SaaS by third parties, independent contractors, vendors, and others
- Service provides by third parties, independent contractors, vendors, and others
- Dispute resolution, choice of law, etc.
- Default provisions
At Revision Legal, we offer legal solutions to move from concept to agreement and then to actualization. We also offer legal assistance with enforcement and are top-tier SaaS litigators if disputes end up in a courtroom or arbitration proceeding.
Other ways an SaaS lawyer can assist your SaaS business
There are many other ways in which an SaaS lawyer can help your SaaS business. Interestingly enough, an SaaS platform can become a software-as-product if your SaaS business wants to license the software, platform, and business model to third parties. Under those circumstances, your SaaS business will need to negotiate and finalize a licensing agreement. All businesses, of course, need various legal services like corporate entity formation and maintenance, intellectual property legal services, responses to litigation and threat of litigation, response to governmental and administrative investigations, help with other types of business contracts, compliance assistance with labor, privacy, tax, and other laws and regulations, and more.
Contact the SaaS Attorneys at Revision Legal
For more information, contact the experienced SaaS Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.
