Don’t grant a license to SaaS, AIaaS, or other cloud services
Many software-as-a-service (SaaS) contracts grant a “license” to the vendor’s software. So do a lot of other cloud services agreements – on offerings like PaaS and AIaaS (artificial intelligence as-a-service). That’s a mistake, at least in the U.S. and jurisdictions with similar copyright laws. Licenses authorize reproduction of on-premise software (generally). Customers don’t reproduce SaaS […]
The Tech Contracts Master Class™ Now Available On-Demand
We’re excited to announce that our popular Tech Contracts Master Class™ is now available as a recorded resource – in our On-Demand library . You get one year’s access, so you can use the program both for training and as a reference guide for future projects. And for a short time, you can buy the Master […]
Why Not to Use “License” Agreements for Software-as-a-Service (SaaS) Deals
This article has been updated with a new one: “Don’t grant a license to SaaS, AIaaS, or Other Cloud Services.” Many software-as-a-service (SaaS) contracts grant a “license” to the vendor’s software. That’s a mistake. Licenses authorize making copies of on-premise software. Customers don’t copy SaaS, so they don’t need a license. And if you’re the […]
How Long Should a Warranty Last?
Students and trainees often ask me how long a warranty of function should last. And contract negotiators regularly debate it. Someone should do a thorough survey, but in the absence of good data, I’ll offer my experience. Duration I don’t often see software warranties shorter than ninety days. Thirty days seems to be the bottom. […]
Time to Get Back to School – with Tech Contracts Academy®
This fall is the time to expand your information technology contracting expertise. Don’t wait! Join us. Tech Contracts Academy® distance learning opportunities include Tech Contracts Master Classes™ (a 7 ½ hour program covering all clauses typically found in IT contracts, in four classes), one hour+ topical webinars, and customizable in-house trainings (for groups, ranging from […]
Yes, You Can Negotiate SLA Legal Terms
IT providers often argue that they can’t negotiate service level agreements (SLAs). They’re right in most cases, but with important exceptions. SLAs govern procedures for fixing broken technology, as well as credits for downtime. The provider generally can’t modify the procedures and software it uses for that support — at least, not at reasonable cost. […]
New SaaS Agreement Sample Form
Today, we updated one of Tech Contract Academy’s key sample contract forms: the Hybrid Cloud Agreement with Professional Services. It’s available to you, along with the rest of our forms, at the Contracts Page. This is the first update based on best practices and changes featured in the third edition of David Tollen’s book, The […]
Cloud Services Are Neither Products nor Services
Contract drafters regularly confuse cloud services with traditional products and services. They approach software-as-a-service (aka SaaS) and other cloud services as if they were either software products or old-style services, like professional services. That leads to perplexing negotiations and contracts full of errors. Much of the trouble stems from the IT industry’s vocabulary. In the […]
Auto-Renewal Best Practices for B2C Contracts
Most SaaS vendors rely on automatic renewal terms — and love them. If the customer doesn’t think to cancel shortly before the term ends, the contract automatically renews. But the U.S. states have begun to clamp down on auto-renewal in B2C contracts — in agreements with consumers. South Dakota passed a restrictive law this summer, […]
Browsewraps Could Be Enforced
The Tech Contracts Handbook warns website operators not to rely on browsewraps: contracts posted online without a click-to-agree requirement. In fact, the book warns against any contract executed or even amended without without clear consent from the customer, like an “I agree” click. (See TCH 2nd Ed. Ch. III.S and Append. 3.) Without that sort […]