Q: What is a SaaS license agreement?
Q: What does SaaS mean?
A: It’s an acronym for “Software as a Service.”
Q: How is this different than a traditional software license?
A: Prior to there being sufficient bandwidth to support SaaS, software agreements focused on desktop applications and apps hosted on a local server for internal use rather than via the Internet.
Related Article: Licensing Your Software With A Click-Wrap Software License Agreement
With SaaS, putting the application on cloud platform creates additional legal risks that must be protected against in the licensing agreement as well as different rights that need to be explained so that both the licensor and the licensee understands what can and cannot be done with the software when it’s accessed online.
Q: Is a SaaS subscription agreement the same as a SaaS license agreement?
A: A SaaS subscription agreement is one type of SaaS license.
It’s commonly used where a customer pays monthly or annual fees to access the app online. When the subscription terminates, the customer loses access.
Related Article: How To Use A Software Evaluation Agreement
However, there are other types of SaaS licensing options. For example, a single license fee might be paid (rather than recurring fees) for permanent access to the software as long as the customer wants to use it.
Q: Is a SaaS license an End User License Agreement (EULA)?
A: It can be. However, there are variations in SaaS licensing. Although one might license to a company and its employees under a EULA, it’s also possible, for example, to have SaaS licenses that permits resale via private labeling.
Related Article: EULA – 7 Keys Parts Of An End User License Agreement
In such a scenario, the underlying software is accessed on the cloud platform. However, the private label licensee has an interface that rebrands the app for access by customers the licensee has procured under the private label brand.
Q: How do you know what’s the best Software As A Service Agreement for your app?
A: Speak with an experienced software lawyer who can advise you and prepare the right SaaS license agreement template for your unique needs.