Software As A Service Licence Agreement

Many software-as-a-service (SaaS) agreements grant a “license” to use the vendor`s software. It`s a mistake. Licenses apply to on-premise software. SaaS is a service, as the name suggests, and it doesn`t need a license. And if you`re the provider, a license can hurt you. SLAs are often used for B2B services, but rarely for B2C services. Even in the absence of a software license agreement, the provider has the potential to obtain a valid right: in return for the obligation to provide the services, the customer undertakes to pay the corresponding costs to the provider and to ensure that the customer`s data does not justify debts on the part of the provider. The distinction has repercussions on several clauses of a SaaS agreement: like the technology itself, the design of technology contracts is becoming increasingly complex; However, the applicable legal theories remain similar. When a software license agreement is used, Licensor retains a legal interest in the intellectual property, such as: “Additional Services”, technical services account manager (“TAM”), support and maintenance or other services related to the software provided by Atlassian, as specified in an order. Software license agreements contain maintenance clauses in which the provider agrees to resolve any issues with the software and to ensure that it is always updated and updated so that the customer no longer lags behind other users. This does not apply to a SaaS agreement because the customer does not keep their own copy. In most cases, when the vendor uses an upgrade or update on its own computers, the customer should benefit automatically (depending on the terms of the contract).

Structure: Will your document create a single contract with each client or could there be multiple contracts? In the case of a single contract, can different elements of the services be terminated independently of the other? However, there is no legal obligation to include the data processing clauses in the same document as the main service provisions, and many service providers use separate data processing agreements. The good reasons for this are: (a) only part of your customer processing is subject to the GDPR, but you want to use the same terms of service for all customers; (b) It will be difficult to negotiate new legal terms with existing customers, but you need to introduce data processing clauses in their contracts….

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