SaaS Agreements – Data Protection – New Proposed EU Rules – Part 1

On the 25th of January 2012 the European Commission published a proposal for a new Data Protection Regulation to replace the existing EU Data Protection Directive. The proposal sets out a general data protection framework aimed at unifying the current differing data protection rules in the EU. I have summarised the major changes this will make to EU data protection law in two articles, part 1 of which is set out below.

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SaaS Agreements – Software – Copyright Protection

The Advocate General ruled that the functionalities of software are simply “the service which the user expects” from the computer programme. For example, when using software to book an airline ticket the functionalities of the booking process will be the same regardless of which company’s software you use. Such services cannot be protected by copyright. However, what can be protected by copyright, is the means by which the functionalities are achieved as this reflects the author’s own intellectual creation. Protection will depend upon the degree of originality in the writing of the software.

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SaaS Agreements – Need for an Escrow Agreement

Having an escrow agreement in place protects all parties involved in the development, supply and use of business critical SaaS applications. It provides customers with peace of mind for securing long-term availability of a critical SaaS application by enabling customers to update software and fix any bugs even if the supplier is no longer able to support them.

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