I recently reviewed a beta testing software agreement that was a disaster. Because it didn’t protect the developer and caused nothing but confusion for the beta testers as to their rights and responsibilities.
Why?
When asked about the agreement, the developer said it was a template that he had borrowed. And he agreed that it didn’t really fit the situation but that he had used it out of expediency (and to save money?).
Now it’s common for Software-as-a-Service (SaaS) startup founders to cut corners on legal stuff and hope nothing blows up before investors put in enough money to pay the lawyers to clean things up going forward.
Yet that’s a needless risk that too often destroys an otherwise viable startup. It’s like driving drunk every night and breathing a sigh of relief every time you make it home safely. It works until you crash…hurting yourself and others.
For example, a customer’s end user license agreement (EULA) isn’t exactly the same thing as a beta testing license. Nor is it the same as a trial/evaluation license. And, the language used for adult end users will be different than that used if your application is to be used by children.
So, when you’re creating valuable intellectual property (IP) like a software application it makes sense to use the right types of software agreements from the beginning…both to protect your IP and to show potential investors that you aren’t playing fast and loose with the startup’s operations.
Do you need help identifying which software licenses you need? It’s time to schedule a phone consultation with Software Lawyer Mike Young.
