The terms of a SaaS agreement should always include a clause limiting the SaaS supplier’s liability to the customer. The specific details of the liability clause will depend upon the type of SaaS software being supplied, the value of the SaaS agreement and what is usual in the business sector in which the parties operate.
The following issues should be covered by the limitation of liability clause in most SaaS agreements.
Month: January 2013
SaaS Agreements – Data Protection – German Customers and Data Processing Agreements
If you are negotiating sales of SaaS solutions with German customers, you may be surprised by their insistence on having a separate written data processing agreement in addition to your SaaS agreement. This is a mandatory requirement under German data protection law (The BDSG) which imposes onerous obligations far beyond those found in most other EU data protection laws on the SaaS customer and the SaaS supplier.
Continue readingSaaS Agreements – Terms and Conditions – Subcontractors and Outsourcing
The terms of your SaaS agreement must include the right to use sub-contractors as 99% of SaaS suppliers use at least one sub-contractor – a third party data centre – to host their SaaS software. SaaS customers often try to prohibit the use of sub-contractors or place severe restrictions on their use by insisting that they must give prior consent to each sub-contractor. This is not acceptable for practical reasons as often numerous sub-contractors are used in providing the SaaS services and these sub-contractors will change over time.
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