
SaaS Attorney For Hire in 2019 helping and representing SaaS, Software & Cloud startups, vendors, providers, licensees & companies developing services, solutions & cloud applications across the USA Andrew S Bosin LLC is an experienced SaaS Lawyer who understands SaaS Law and drafting and negotiation of Master Service Agreements, Subscription Agreements, End User License Agreements (EULA), Reseller Agreements, Software Application Development Agreements, SaaS contracts and hosted software agreements. As a leading, skilled, expert SaaS Software Licensing Attorney located in New Jersey, Andrew drafts plain English Software and SaaS Agreements, Subscription Agreements and end-user licensing agreements. Our clients have included software developers, internet and mobile marketers, professional services partnerships, startup founders and investors, hosted services providers, vendors, and other established and emerging companies.
Our extensive experience with IT, software, and Internet related matters makes us uniquely suited to help technology companies with their legal challenges. If you need a SaaS Software Agreement lawyer, then consider the Law Offices of Andrew S. Bosin, LLC.
If your business uses any type of software there is a good possibility that its SaaS based. In this setting, SaaS is referred to as software-as-a-service, a growing area of the software world which differs from traditional enterprise software.
The agreement or contract that governs the use of the SaaS services, applications or solutions and describes the rights and obligations of the parties, i.e., the user and provider is referred to as a SaaS Agreement.
A SaaS contract and both the obligations of the providers and expectations of the customers are different then what is found in a typical traditional based on-premises software licensing agreement.
Here are some reasons why an experienced SaaS lawyer can be beneficial in helping SaaS users navigate and understand the SaaS legal contracts negotiations process.
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The difference between SaaS based Software and Traditional Software
The two main differences are accessibility and price. With traditional software you go to the store make a one-time purchase, install the software on your computer and as long as you abide by the terms and conditions you can use the software conceivably forever. On the flipside, SaaS software is cloud based and as soon as you sign the contract and pay your fee the software is available to be accessed by an internet connection.
The other difference between SaaS and traditional software is price. While traditional software typically charges a one-time fee, the user of SaaS software will most likely pay a monthly fee to access the software. And, unlike traditional software, the user of SaaS Software does not own the software.
Pricing Plans
A customer’s access to the SaaS service or application is typically made available on a subscription basis, with monthly or annual plans as the most popular choices. In examining a SaaS agreement it should state in plain English what plans are being offered and what they include.
The User’s Rights To Access The Software
Before making a SaaS purchase, or subscribing to a service your company should sit down and determine how many users will be accessing the software. This is because pricing is usually linked to certain key benchmarks, such as the number of users, or storage limits. So, “your” SaaS agreement should very clearly set forth the applicable benchmark. Specifically, if you want 100 users to access the software the SaaS provider could require your company to define or delineate those 100 employees as opposed to how you want to use the software which is any 100 employees at any time.
Service Level Agreements (SLA)
As a SaaS user it is critical to the success of your business that the application be functioning properly and up and running constantly, 24/7, 365 days a year. An important part of the SaaS Agreement is holding a SaaS provider to a minimum performance standard in connection with a SaaS agreement. An example is that the service will have an uptime percentage of 99.9%, meaning the service is guaranteed to be up, available and running live 99.9% of the time. This performance standard is known as a Service Level Agreement (SLA). You also need to have the Agreement spell out how the performance standard will be calculated.
What if the SaaS Vendor files for bankruptcy or goes out of business?
It is important to make sure that the SLA contains language that clearly states that you can export your data from your SaaS provider. This clause should also include how often and in what type of format you may access your data. The clause should also state that the vendor will assist in migrating your data, for an appropriate fee.
Who owns the Data Being Generated By The SaaS Application?
If your SaaS Agreement is a Licensing Agreement rather than a Master Service Agreement it is likely that the SaaS provider will strictly limit what your company can do with all the data that will be derived from the users. This is typically the case where the SaaS Software allows the entity accessing it to modify the software and use it on line publically where users outside the company could leave their personal data in using the software such as name, address, etc. In negotiating a SaaS Agreement you want to make sure the ownership of the data is clearly spelled out and what your company can or cannot do with it. You also want to make sure that the SaaS provider is maintaining the data safely on its servers and that it is dealing with all security issues.
What is the length of the Agreement and how do you terminate?
You want to make sure that before you sign a SaaS Agreement that you understand the duration of the term, how the Agreement gets renewed and how you can terminate early if need be.
Maintenance of the Software
The Agreement must clearly state which party is responsible for implementing and maintaining the service including fixing bugs and pushing updates.
Protecting Sensitive Customer Personal Data and Information
A scary thought for SaaS users is that unlike traditional software which is typically run on a company’s local network, SaaS applications are hosted and served by SaaS providers in the cloud. Given the nature of cloud based software, there is a possibility of customer data or information being compromised, stolen or hacked. Therefore, SaaS users should insist on language in the SaaS agreement saying that the SaaS provider shall indemnify and hold the user harmless in the event the provider’s negligence has caused data to be compromised.
What Are Some Legal Compliance Issues Faced By US SaaS & Cloud Services Providers with New European (EU) General Data Protection Regulation (GDPR)
Before stepping foot on European soil US based cloud services providers should make sure that their business methods of gathering, storing and transferring of personal data and data protection is in compliance with the EU General Data Protection Regulation (GDPR) which protects the personal data and privacy rights of individuals residing in the EU. Unlike the well defined GDPR, the laws on internet data protection and privacy here in the United States are unclear and not as well enforced as in the EU. It is not uncommon for EU regulators to hand down harsh monetary penalties to companies for violating the GDPR.
One of the definitions of “Personal Data” under the GDPR means any information relating to an identified or identifiable natural person; an identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to his physical, physiological, mental, economic, cultural or social identity.
Some of the areas of particular concern for US web cloud based SaaS & IoT providers seeking to do business in the EU are where can the data gathered about EU residents be stored and transferred. The GDPR has made it clear that if you are gathering data from a resident of the EU that all data must remain in the EU being served and hosted on EU soil.
A critical and key change in the GDPR deals with the “extra territorial” provision that all non-EU entities will need to familiarize themselves with. Previously, the EU law in this area applied only to those companies that control the use of the data and have some sort of establishment or equipment in the EU. With the new changes in the law coming, the GDPR applies directly to any entity that processes personal data about EU residents in connection with (i) the offer of goods or services in the EU; or (2) the monitoring of behavior in the EU. Clearly, the Jurisdiction of an entity will be measured digitally not physically. The new law will pay less attention to the physical location of the entity undertaking the processing of data about EU residents. When measuring this reach, regulators will analyze a host of factors, including how a website references EU individuals, the currencies it accepts and the languages used. In addition, any profiling of EU individuals will fall directly within these criteria. This is a monumental change and shift in the law and something that companies that have been previously outside the scope of the current law but are now likely subject to the GDPR will need to consider over the next few months.
As part of his legal practice in the United States, Andrew S. Bosin provides legal advice to SaaS, Cloud and IoT companies falling under the new regulations of the EU General Data Protection Regulation (GDPR) regarding the protection and safeguarding of personal data and confidential information gathered about residents in the EU.
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There are a host of other legal issues to think about for a SaaS, cloud or IoT provider doing business and testing the waters by entering into cloud contracts and business legal deals and transactions with European customers and clients. For starters, what are some of the legal issues faced by SaaS and cloud providers from the United States doing business in Europe? The big one is cloud taxation issues and impacts and how are taxes computed, owed and paid on the goods and services your company sells or licenses in Europe.
What are some of the legal issues faced by US Internet of Things vendors doing business in Europe? Quite frankly, IoT providers are dealing with most of the same legal issues that have been mentioned in this article. Some of the other issues are liability and the possible legal risks associated with hosting, serving, managing and transferring personal data such as loss of data, a cyber attack or issues with privacy and data protection. A good cloud lawyer will help clients minimize the legal risks with well drafted agreements and contracts.
Please call Andrew for a free SaaS legal consultation at 201-446-9643
www.njbusiness-attorney.com | andrewbosin@gmail.com
Please call SaaS Contracts Lawyer Andrew S. Bosin for a free legal consultation at 201-446-9643.
www.njbusiness-attorney.com – andrewbosin@gmail.com
SaaS Attorney Andrew S Bosin LLC is located in New Jersey just outside of New York City and has a nationwide SaaS Software Law Firm serving clients across the USA.
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