Saas Agreement Issues
When it comes to the issue of data protection, imagine a scenario in which your SaaS provider is the victim of a data protection breach, compromises the sensitive information of a third party and that third party wants to hold you accountable. Finally, this third party has entrusted your company with the protection of its information. Scenarios like this, which are common, are the reason why it would be nice for your SaaS agreement to grant you compensation and other safeguards if one of your angry customers, customers, patients, or employees files a lawsuit against you for the damages they suffered as a result of your use of the SaaS program. In the best case, does the agreement stipulate that the provider keeps you harmless or not in the event of certain claims arising from the use of their software? For more information on what should be included in a SaaS agreement, check out our webinar on the most important terms contained in the SaaS contracts of IP, Commercial & Technology Associate Ed Kilner. Once you`ve purchased your SaaS provider, it`s best to designate someone from your company internally as the « contract owner. » This person is responsible on a daily basis for managing the relationship with the software vendor, checking performance, and ensuring that issues are resolved before they escalate. Without this clear interlocutor and without a sense of responsibility, problems cannot be prioritized when they arise. It is the responsibility of the contract holder to ensure, throughout the duration of the contract, that your company gets the most out of your contract and SaaS product. The service levels and service credit mechanisms typically offered by SaaS providers, if at all, are often not sufficient and do not incentivize the right kind of performance from the SaaS provider. The SaaS agreement should include at least service levels for availability, capacity, response and solution times, capacity, support, and service capacity. For the customer, it is important to ensure that service levels are clearly defined and that there are clear consequences for the inexeligibility of these service levels. Customers should also be cautious about performance standards embedded in a hyperlink or URL, as they are often changed unilaterally by the SaaS provider and therefore do not give scope or performance security to the customer.
The SaaS agreement often contains a prohibited use clause that indicates the behavior that causes a user to lose their license or access.. . . .