From April 2014 the UK government plans to change the Insolvency Act under the provisions of the Enterprise and Regulatory Reform Act 2013 (ERRA). This will make the SaaS supplier’s right to terminate or alter the terms of an existing SaaS agreement if a SaaS customer becomes insolvent. From this data no SaaS agreement may be terminated or have the pricing and payment terms changed due to a customer’s insolvency. Furthermore the SaaS supplier must continue to provide SaaS services without receiving any payment or having any right to arrears.Continue reading
Increasingly SaaS suppliers encourage employees to use social media accounts i.e. LinkedIn and Twitter to promote their products and business. However this often results in a conflict arising between claims of misuse of confidential information and “ownership” of accounts and contacts when the employment relationship comes to an end.
The High Court has recently highlighted the need for SaaS suppliers to have a clear policy on the ownership of such social media accounts and contacts when they are used by employees for business purposes.Continue reading
The issue of software patents has recently been highlighted by a proposal to change German patent and copyright law. The proposal recommends preventing computer software being registered as a patent, arguing that computer software should only be protected using copyright law, as this is sufficient to protect a software developer’s rights. In light of the current German proposal, below is a brief summary of patent and copyright law in relation to SaaS software in the UK, Germany and non-EU countries.Continue reading
It is important to understand the difference between applicable law and applicable jurisdiction when negotiating a SaaS agreement. Applicable law specifies which country’s laws will apply to your SaaS agreement. Jurisdiction specifies which courts will have authority to deal with a dispute. Usually a UK SaaS agreement will specify the laws of England and Wales as the applicable law and the courts of England will have jurisdiction.Continue reading
In the current economic climate, SaaS customers often deliberately delay payment of invoices. In order to protect your SaaS business and improve your cash flow, you should consider including the following in the terms of your SaaS agreement.Continue reading
When negotiating a SaaS agreement you will come across the terms source code, object code and open source. What is the difference if any between source code, object code and open source?
Source code is the version of a computer programme (SaaS software) 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. These statements are saved in a named file and are called the source code.Continue reading
Below, I have set out the main legal requirements (including some optional recommendations) that you should comply with when operating your website in the UK. Even if you do not sell SaaS products or services online via your website, you will still need to comply with the following English laws when operating a website in the UK.
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SLA is the common abbreviation used for a service level agreement. When providing SaaS services to customers you need to include a SLA in your SaaS agreement, either as part of the main terms of your SaaS agreement or in a specific SLA schedule. A SLA should set out the following support and maintenance services that you will provide to customers to ensure that the SaaS software is made properly available to them.Continue reading
If your are a SaaS supplier or SaaS customer you should be aware of the provisions of the Bribery Act when negotiating the terms of a SaaS agreement. The Bribery Act 2010 (“Act”) has been in force since July 2011. It aims to distinguish between hospitality (which is permitted) and bribes which are illegal. A breach of the Act can result in an unlimited fine and a maximum prison sentence of 10 years.Continue reading
SaaS is the abbreviation for “software as a service”. You may know this under another name, for example ASP services (application service provider), software on demand or software subscription. These names all refer to the same thing – software being made available via the Internet to users.
What is a SaaS Agreement?
A SaaS agreement is simply the name used for the agreement between a SaaS supplier and a SaaS customer which sets out the terms under which SaaS software may be accessed. This will usually include a service level agreement (SLA).Continue reading