License Agreement Saas

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Among the general clauses of an agreement with the general terms and conditions of sale are the following: If you grant licenses for SaaS, you may be confused by the other important differences with the on-premise software. For example, SaaS contracts do not need maintenance clauses that require the vendor to repair the customer`s copy […]

Sep 26
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Among the general clauses of an agreement with the general terms and conditions of sale are the following: If you grant licenses for SaaS, you may be confused by the other important differences with the on-premise software. For example, SaaS contracts do not need maintenance clauses that require the vendor to repair the customer`s copy of the software. On the contrary, SaaS contracts need Service Level Agreements (SLAs) that recognize that the vendor hosts the software and calls it to keep the system running. SaaS contracts do not need updates and upgrade clauses. Here too, the provider hosts the software, so all revisions are available as it goes without saying. For those who design software contracts, SaaS agreements and confusing software licenses are a frequent occurrence. In the event of bankruptcy, a provider may cease to perform contractual obligations, including ongoing SaaS services. It is possible that a court may compel a supplier to continue to provide contractual services, but only if they are covered by an intellectual property license. This is because Section 365(s) of the Insolvency Act protects the customer`s right to continue using « licensed intellectual property ». It does not protect contractual services. Intellectual property laws that deal with copyright give the owner of the software the exclusive right to reproduce or copy the software, so the customer needs his own copyright license to have a copy on his own computer(s). In general, however, most SaaS offerings do not require the installation of software on a computer at all.

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