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How To Protect Yourself With A Software Services Agreement

By October 31, 2012September 21st, 2017Software Agreements, Software Lawyer

software services agreementA technology business owner typically needs a software services agreement when the company offers software as a service (SaaS) to clients via hosting on the business’ servers or through cloud hosting by a third party (e.g. Amazon S3).

Related Article: Software Lawyer – How One Can Help Your Business

In other words, the Internet company offers centralized hosting of on-demand cloud software for clients to use. This contrasts with traditional software (such as a desktop application) that is installed on the client’s computer(s) from a USB flash drive, from a data CD, or after downloading from the company’s website.

When you sell software as a service, some of the issues you will want do discuss with the software attorney who drafts your software license agreement include…

1. Will you be paid an upfront licensing fee, monthly fees, or by some other method?

2. Are updates included with the license?

Related Article: How To Use A Software Evaluation Agreement

3. What types of restrictions will you place on client use of your software?

4. How many people can use your software per license?

5. If the client becomes upset, how will disputes be handled to limit your liability?

Related Article: EULA – 7 Key Parts Of An End User License Agreement

When drafted properly by an experienced app lawyer, a software services agreement can protect your company when it offers software as a service to clients.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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