Software Contract Lawyer and Technology Attorney in New Jersey outside NYC drafting SaaS contracts, technology licensing agreements, software contracts, app development agreements, website terms and conditions and privacy policies for entrepreneurs across the US.
Call SaaS Lawyer Andrew S. Bosin at 201-446-9643 for free consultation. Or, you can email Andrew at: andrewbosin@gmail.com.
As the owner of a top SaaS Law Firm, Andrew understands the legal needs of his clients better than most attorneys. This is because Andrew is one of the few SaaS Attorneys who has actually built, launched and scaled a startup company with partners. While he was building his startup law firm Andrew took the time to also create two Delaware C Corporation SaaS companies as General Counsel.
Andrew also advises startups across the US on Corporate law and governance to provide protection and structure for company founders. As a corporate attorney in New Jersey, Andrew provides consultation to startups and early seed stage SaaS and software emerging growth companies in the areas of Delaware business formation and incorporation or New Jersey limited liability company (LLC) formation.
Proper corporate structuring is necessary for startup companies seeking capital investments from seed, friends and family, angel and VC investors.
Because he has built two SaaS startups with partners, Andrew provides a perspective on how to properly structure a startup from the commencement of the business that very few other lawyers can offer.
Drafting MSAs and SOWs
As a software attorney, Andrew drafts Master Service Agreements (MSA) and Statement of Work (SOW) documents for SaaS startup companies, vendors and customers. These documents are necessary for software development as they protect the software vendor and define the contractual terms and conditions of a legal business relationship between SaaS provider and the customer.
Some examples of the contractual terms and conditions may be Limitation of Warranties, Indemnification, Limitation of Liability provisions, Payment terms language, and more. The first step in establishing a legal business relationship between the SaaS vendor and the customer is drafting an MSA.
An SOW serves to memorialize certain terms and conditions that are associated with a particular software project requirement. Such terms may include, scope of the project, managing the project, pricing, timing of deliverables and materials.
The experience that Andrew gleaned in participating in the company’s software development, legal, marketing, sales and business processes was nothing short of priceless. Every week Andrew gets calls from SaaS entrepreneurs telling him about their experiences in trying to build and scale their companies and unlike most attorneys Andrew understands exactly what they are going through in doing the startup grind.
One of the most experienced New Jersey software attorneys and SaaS lawyers Andrew S. Bosin drafts software contracts, and software app development agreements.
Andrew offers free initial consultations on creating, preparing and drafting SaaS template agreements, samples, contracts, forms, subscription agreements, customer agreements, samples, MSA agreements, sales agreements, reseller agreements, EULA agreements, enterprise agreements and services agreements.
Technology Attorney Andrew S. Bosin LLC is located in New Jersey outside of New York City and represents SaaS, Software, Cloud, Technology, Big Data and Mobile App startups, companies, vendors, entrepreneurs and Delaware C Corp founders in Salt Lake City, Utah, Los Angeles, Raleigh and New York City.
Andrew also represents clients in Silicon Valley, Columbus, Ohio, Phoenix, Boston, Atlanta, Tampa, Long Island, Nashville, Dallas, Indianapolis, Charlotte, Albany, Denver, Washington DC, Las Vegas, Miami, Houston, San Jose, CA, Austin, Orlando, Connecticut, San Diego and Chicago.
Flat Fee Startup Legal Packages
One of the things that Andrew offers to SaaS, Cloud, Software, Internet and Technology startup clients is the financial certainty of knowing that the legal work that Andrew performs on their behalf will be completed for a flat rate, fixed fee.
Because he also built and scaled a startup company Andrew understands how vitally important it is for startups to have a grasp of their finances. And, equally important is how much their legal work is going to exactly cost them.
The problem with startups seeking advice from big law firms is that most big firms are not equipped from a client billing perspective to accept matters on a flat fee basis. Truth be told, with a flat fee, the startup Law Firm is taking a risk with its time in promising to the client that it will be able to complete the project for the flat fee price quoted.
Sometimes, a lawyer spends more time than he or she calculated they would need to do to complete a project for a startup client but that’s the give and take with a flat fee.
The business startup package offered by Andrew’s law firm bridges the gap between big law firms with sky high legal rates and DIY services that do not provide any actual legal advice.
The first step in the Process is a Zoom session where Andrew and the startup client determine the most appropriate business entity structure. Those clients that have numerous founders, anticipate clients being all across the US and have the need to do an investor capital raise will typically opt for incorporating as a Delaware C Corp.
One of the advantages that Andrew has over most lawyers is that he was an owner and General Counsel for a SaaS Company, a Delaware Corporation over a five year period during which time he performed just about every legal function related to incorporation, issuing stock to founders and investors, closing capital financing rounds and negotiating investor agreements.
Because legal and tax considerations are important in having the ability to decide on the right business entity for a startup company, your accountant or tax advisor should be part of this discussion also.
In offering a Startup Legal Package, Andrew will do the following:
-Make an introduction to an incorporation company in Delaware that will get your company incorporated, shares issued and tax ID number from the US government.
-Draft C Corp bylaws, board resolutions, founder shareholder agreements, founder IP Assignment Agreements and IRS 83(b)(6) filing documents.
-Draft NDA’s, Advisor Agreements, Independent Contractor Agreements, Non-Compete and Non-Solicitation Agreements and Employment Contracts.
One of the critical pieces in developing SaaS software is in the beginning stages where the client and developer create drawings, wireframes and schematics and try to get on the same page to understand exactly what needs to be built.
The last thing you want to have happen is to spend a lot of money having a SaaS application developed only to get a product that does not function properly or not according to your specifications.
Andrew also saw first-hand how the whole software development process comes together with the developer reaching milestones or certain phases where pieces of the software are finished such as the front end and back ends.
And, Andrew has also personally raised capital for his startup and closed four financing rounds. Andrew also met with and spoke with dozens of potential clients and investors, including VC’s.
Why is this important? It’s because inevitably SaaS startups will seek out investors and Andrew can provide guidance about the process from start to finish.
Andrew’s experience in building a SaaS startup has been priceless. Clients seek Andrew out not only to help them draft SaaS contracts and agreements but also to help them build and scale their companies.
Andrew, because of his own startup experiences also helps clients understand the differences between recurring and non-recurring income.
Recurring income is your company’s steady group of customers that renew their contracts year after year.
Non-recurring income is something that is short term or purchased one time such as buying movie tickets or some groceries.
Andrew also helps tech startups close capital financing rounds whether its from an angel or from friends and family. Andrew also reviews and advises on VC term sheets.
In trying to meet their capital needs it is typical that tech startup founders obtain early round financing from their own savings or founders bootstrapping together or from friends and family.
It is common for friends and family to invest anywhere from $5,000 to $200,000. Typically, these close connections are willing to risk their own money because they want their loved ones or friends to succeed.
While taking money from close friends or relatives is convenient and might cause the startup not to enter into formal agreements with the investors if things go wrong and the investor loses their money it is possible despite the close relationship between the parties that the startup or company founder could get sued by the friends or family investor.
That’s why it is good corporate practice to enter into formal agreements with all types of investors. Startups should also make sure that the investor is qualified under the law to invest money in startups.
Startups should also provide whatever documentation about the startup that the investor requires so that the investor can make an informed decision about the investment.
Angels in some ways are the same as friends and family investors and in some ways they are different. Typically, angels invests as small groups in certain industries.
Angels typically have more experience investing in early stage pre-growth companies than friends and family investors. While friends and family investors provide capital for companies at the very early stages usually right before or after incorporation angel investors typically invest in companies that have built a product and inject between $150,000 and $2,000,000.
Also, angel investors unlike friends and family investors do not personally know or have a relationship with the startup and they are looking for a return on their investment.
Angels also should add their experience to the startup and act as a mentor which typically does not happen with friends and family investors.
Perhaps a SaaS vendor holds an event and gets five customers out of it. There is no guarantee that these customers will be recurring income. Please read Andrew’s article on SaaS Startup Tips. https://saas-lawyer.com/saas-lawyer-1/f/saas-startup-tips
SaaS Vendor Security Issues
Companies that are considering using a SaaS application should ask questions when negotiating SaaS Agreements with providers about the security provisions that SaaS vendors include in their SaaS customer agreements. SaaS customers should insist on strong language in the vendor agreement that demonstrates that the vendor shall take the required appropriate technical and organizational measures to prevent the unauthorized or unlawful processing of customer personal data and accidental loss, destruction or damage to the customer’s personal data.
SaaS customers need to make sure that SaaS vendors have adequate security measures put in place to prevent data protection breaches from occurring.
SaaS customers should also ask vendors about whether or not their company has done or has implemented the following:
(i) employee compliance and security training;
(ii) employee training related to phishing emails;
(iii) accessing systems with single sign on (SSO) or multi-factor authentication (MFA);
(iv) running compliance audits if processing personal information;
(v) putting implemented controls in place to determine who can access certain files or view certain resources;
(vi) implementing security policies;
(vii) encryption of all data in transit and at rest;
(viii) testing of its systems (vulnerability and penetration);
(ix) having at SOC-1 or SOC-2 audit performed;
(x) obtaining Errors and Omissions Insurance which should include coverage for cyber attacks;
(xi) obtaining ISO 27001 compliance;
(xii) the vendor’s compliance officers being well versed in local privacy laws;
(xiii) creating and implementing a comprehensive incident and response management plan to limit damages, remediate the problem and notify companies/individuals that a data breach/cyber attack has occurred.
(xiv) creating a secure data recovery plan which should include a data backup plan;
(xv) listing the vendor’s latest subprocessors;
(xvi) becoming PCI DSS compliant if your company processes credit cards or financial transactions.
Information Security Officer
SaaS companies should consider appointing an information security officer to assess their cyber risks. Without an information security officer it is possible the SaaS vendor will lack sufficient knowledge or understanding of actual cyber security threats or risks. In turn, SaaS customers will not be able to undergo proper due diligence of the vendor’s security measures and protocols. And, vendors will not be able to respond sufficiently to customer inquiries.
One of the biggest threats today is cyber hackers. An information security officer could keep watch and monitor and detect such issues, keep up to date on the latest security countermeasures and respond to inquiries from customers.
Notification and Response to Cyber Attacks
It is important that both the SaaS provider and customer inform each other about data security breaches so that both parties can deal with the issue in a timely manner. The vendor should put a plan in place to respond to the breach and also to notify the customer of what actions it is taking to restore the Service or protect the customer’s data.
Due Diligence and Auditing
Today, SaaS customers are processing more and more sensitive data and trusting that the vendors will protect and safeguard such information. If you are a SaaS customer it is a good idea in the contract negotiations stage to do your due diligence and request the vendor to demonstrate what security measures and protocols have been put in place to safeguard customer data. One such measure is the vendor backing up the customer data in a different region. This is necessary in the event that there is an occurrence which causes the data in one region to be compromised then at least the customer’s data is also being backed up in another part of the US. Another security measure that the vendor can employ is restricting access to customer data to only certain qualified employees on a need to know basis.
Passwords
Not requiring the use of passwords by the vendor or customer is one sure way of inviting the SaaS service to be hacked. Vendors should require that all customers and their users log in to the SaaS service with passwords.
These are just some of the general security issues that SaaS customers and vendors should be aware of when negotiating a SaaS agreement.
If you need legal advice about SaaS data security issues please call SaaS Attorney Andrew S. Bosin at 201-446-9643.
Information Technology (IT) Agreements
Andrew is also highly experienced in technology-centric business transactions and licensing in the ever-evolving and growing IT landscape.
When legal issues are formed by complex technical factors, Andrew has the ability to understand his clients’ business goals and needs.
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