SaaS Agreement – Brexit – Need for an EU Representative

A “no deal Brexit” is looking likely for the 31st of October 2019. SaaS suppliers and SaaS customers need to take steps now to ensure that they comply with the requirement to appoint an EU Representative under the GDPR, where they will no longer have any establishment in the EU after Brexit.

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SaaS Agreements – Preparing for a No Deal Brexit

Currently a “no deal Brexit” is looking likely for the 31st of October 2019. It is therefore essential that SaaS suppliers and SaaS customers take steps now to ensure that they can continue to lawfully process and transfer personal data between the EU and the UK following a no deal Brexit.

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SaaS Agreements – Data Protection – Brexit Update

UK SaaS Agreements: In light of the various leaving scenarios of which a “no deal Brexit” is looking likely, it is highly advisable that SaaS suppliers and SaaS customers now take steps to ensure that they can continue to lawfully process and transfer personal data between the EU and the UK following Brexit.

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SaaS Agreements – FAQs – EU Model Clauses

EU model clauses are standard data processing agreements that have been approved by the EU Commission as providing adequate protection. There are currently two sets of standard contractual clauses for transfers of personal data between data controllers and one set for transfers between a data controller and a data processor. EU model clauses must be used unamended (other than where specific details may be added, as set out in the notes to the clauses).

Where personal data is transferred from:

a data controller in the EU (SaaS customer) to a data processor outside of the EEA (SaaS supplier); or
a SaaS supplier within the EU to a sub-processor located outside of the EEA;

the SaaS supplier will need to enter into EU model clauses with the SaaS customer or SaaS sub-processor, as applicable.

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SaaS Agreements – Data Protection – EU US Privacy Shield

A new privacy agreement called the Privacy Shield has been agreed by the US and EU to replace the safe harbour scheme. The Privacy Shield is based upon safe harbour but has additional protections, particularly with regard to public authority access to personal data. The Privacy Shield must now be reviewed by the European Commission before it can be relied upon and adopted by SaaS suppliers or customers. The European Commission is currently assessing whether or not the Privacy Shield provides adequate protection in accordance with EU data protection laws. This process is expected to take up to 3 months.

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SaaS Agreements – Terms and Conditions – Safe Harbor Adequacy

European data protection authorities have recently raised serious reservations about the effectiveness of the safe harbour scheme and its ability to adequately protect SaaS customer data to the same standard as European data protection laws. If you are a SaaS supplier and are considering/or are already using a company located in the US to provide part of your SaaS services i.e. for hosting, you should be aware of the existence and limitations of the safe harbor scheme.

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SaaS Agreements – Data Protection – Liability for Loss of Backup Tapes

A SaaS supplier can be liable for the loss of backup tapes, not just under the terms of its SaaS agreement but also the Data Protection Act 1998, the Financial Services Authority regulations or other UK rules or regulations regardless of whether the SaaS supplier, its data centre or a third party losses the backups of customer data.

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