For more information on what should be included in a SaaS agreement, check out our webinar on important terms in IP`s SaaS contracts, Commercial and Technology Associate Ed Kilner. 1. Technical data. While SaaS-related technical specifications are important for any product or service offering, they are often overlooked, but the definition of appropriate technical specifications is essential to raise expectations between the parties and avoid litigation on the road. This is especially true when the SaaS is tailored to the customer`s business or processes. Therefore, the saaS agreement should contain technical specifications that appropriately (and concretely) decry the expected functionality of the SaaS. In most cases, the technical specifications contain the parameters that measure saaS performance, whether through the reception test (if any) or by pre-defined warranties or service levels. It is customary for a SaaS app to allow subscribers to download data (data) to use and make full use of the app. Who owns the data uploaded to the app, the nature of the data and how it is uploaded to the app, are important considerations. The question of whether the data is used by subscribers themselves for the use of third-party users is also important and gives rise to different legal considerations. SaaS technology providers should also see where they are in their own IT ecosystem. SaaS contracts with customers are an important piece of the puzzle, but what about the SaaS technology provider`s own licenses, SaaS contracts and other agreements with its own hardware and software vendors? For many companies, this difference between “traditional” software and saaS is, at least at first glance, almost perfect. However, using a SaaS platform via a traditional software model adds several new levels of risk that SaaS providers and their customers should be aware of.
Parties to a SaaS transaction may attempt to reduce these problems and risks by reaching an agreement between them regarding the delivery of SaaS. In some cases, the conditions under which a SaaS provider provides its services are defined in a “Click-Through” document that a user agrees to before accessing the technology.