Second Edition of The Tech Contracts Handbook
I’m very pleased to announce that the American Bar Association has published the second edition of my book: The Tech Contracts Handbook — Cloud Computing Agreements, Software Licenses, and Other IT Contracts for Lawyers and Businesspeople. The book is available directly from the ABA’s online bookstore. (You don’t need ABA membership to buy.) Amazon and […]
The Anti-NDA for Idea Submissions (Instead of the “Feedback License”)
In an earlier post, I explained that the standard “feedback license” arises out of a misunderstanding of IP — and generally asks too much from the would-be licensor. After some kvetching in the comments from Professor Eric Goldman, I suggested a “Disclaimer of Idea Restrictions” instead of a feedback license. Since then, I’ve expanded on […]
Don’t Send Write-Protected Contracts
A lot of companies send their partners contract drafts with write-protection: with word processing protections that force the user to track changes through redlining. This tells your partners that you don’t trust them to point out all their contract revisions. Why do that when no one needs write protection to avoid under-cover edits? If your […]
Avoid Licenses to “Use” Software
A lot of software licenses grant the recipient the right to “use” software. But the use license springs from a misunderstanding of copyright law. As a result, it’s not clear. A use license may give broader rights than the provider intends or narrower rights than the recipient needs. I’m going to suggest a better, simpler […]
Instead of a “Feedback License,” Draft a Disclaimer of Idea Restrictions
In last week’s post, I addressed the myth of idea ownership. I explained that no one can own an abstract idea. I also argued that, therefore, no one needs a “feedback license.” In a feedback license, a company’s contractors or partners give it a license to any suggestions they provide about the company’s products or […]
No One Can Own an Abstract Idea (So You Don’t Need a “Feedback License”)
Technology companies often worry about ownership of ideas they hear. If a contractor or partner gives us an idea, do we need a license to use it? What if it’s an idea about our own product or service? The concern often prompts a “feedback license”: a sentence or two tacked onto a contract about professional […]
The Contract Negotiator’s #1 Tool: MS Word Redlining
This post departs from our usual discussion of contract terms and talks about redlining and redlining software. A redline (sometimes called a “blackline”) provides a quick and easy view of the differences between a new contract draft and an old one. Usually, redlining software underlines added terms and strikes through (crosses out) deleted terms, but […]
Don’t Use License Agreements for Software as a Service
Most IT contract drafters know the difference between a software license agreement and a technology services contract. In a license, the customer gets rights to copy and use software, while in a services contract, the customer gets a service, like tech support or IT consulting. But software as a service (SaaS) seems to throw a […]
Don’t Use Nondisclosure Terms for Private or Electronic Data — Use Data Security Terms
When one party has to protect information belonging to the other, we tend to pull out a nondisclosure agreement: an NDA. Or if we don’t want a separate NDA, we add the NDA’s key provisions to our tech contract as a confidentiality or nondisclosure clause. That makes sense if we’re trying to protect trade secrets […]
Don’t Choose Delaware Law Unless You’re in Delaware
In a recent IT contract negotiation, the other party’s lawyer insisted that the choice of law clause call for Delaware law and courts. His client wasn’t based in Delaware and neither was mine. And our IT project wasn’t happening in Delaware. Why then choose Delaware law? Because Valerie Bertinelli comes from there–or because it was […]