The software licence to be included in a SaaS agreement is very different from the standard software licence found in non-SaaS agreements for the following reasons. Access to the software is provided together with support and maintenance services. Without support and maintenance there can be no licence and vice versa. This is because the customer has no copy (physical or intangible) of the source code or object code. The software is installed on the supplier’s server and accessed by the customer via the Internet.
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SaaS and the legal cloud made simple
SaaS, ASP Agreements – FAQs – Escrow
When negotiating a SaaS agreement you may come across the term escrow. What is escrow and is an escrow agreement necessary? Under the terms of a SaaS agreement you do not own or have any rights to the software (which includes the source code) that you are accessing. This is usually not an issue until technical problems arise, i.e. unexpected service interruptions, downtime, loss of application functionality and loss of data. This can add significant costs to your business and you are dependent upon the supplier to resolve these issues, unless you have an escrow agreement in place.
Continue readingSaaS, ASP Agreements – Source Code and Object Code
When negotiating a SaaS agreement you will come across the terms source code and object code. What is the difference between source code and object code? Source code is the version of a computer programme that exists prior to the software being ready to compile and run on a computer. The source code consists of a number of statements created in a text form by a programmer.
Continue readingSaaS, ASP Agreements – FAQs – Data Protection
Data protection issues must be adequately covered in any SaaS agreement to protect both the supplier and the customer. Data Protection Act 1998. The Act applies to the processing of personal data, for example name/email addresses, dates of birth, national insurance number of any living individual.
Continue readingSaaS Agreements – Essential Elements
The following legal issues should be included in any ASP or SaaS agreement, whether you are a SaaS supplier or a SaaS customer.
Continue readingWebsite Legal Requirements – Ecommerce
About Us/Contact Information. You must provide the following information in an easily accessible position on your web site:
* your legal name i.e. XYZ Ltd
* your geographical address
* contact details i.e. telephone number, fax number and email address
* which country your business is registered in and the registration number
* details of any supervisory body which regulates your business i.e. the FSA. For regulated bodies more detailed information is required.
* where you are registered for VAT and your VAT number
* clear details of prices and whether or not delivery and/or tax is included
Interest from Customers who Pay Late – BTB
In the current economic climate, business customers often deliberately delay payment of invoices. Protect your business and improve your cash flow, by exerting your right to claim interest on late payments. Is an interest clause required in the contract? No. There is no requirement to have an interest clause in your contract. You have a statutory right to claim interest on late payments from a business customer (BTB). The statutory interest rate applicable is the Bank of England Base Rate + 8%. At the time of writing the currently applicable
Continue readingSaaS Agreements – SLAs – Essential Elements
Customers thinking of purchasing software delivered via the Internet (SAAS) are often unaware of what terms should be included. Jargon in the SLA can seem like a foreign language. Customers often tend to simply accept the SLA provided by the supplier, rather than struggle to understand it.
Continue readingSAAS, ASP, software on demand – confused?
What is SAAS? This is the abbreviation for “software as a service”. You may know this under another name, for example ASP services (application service provider) or software on demand. These names all refer to the same thing – and simply mean that you are accessing and using software via the Internet.
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