New Trainings this Fall, with AI Content

Tech Contracts Academy offers multiple training options this fall, including a brand new webinar all about artificial intelligence (AI) in the legal and contracting professions, as well as returning courses enhanced with new AI content. All taught by industry expert David Tollen, author of The Tech Contracts Handbook, our classes are conveniently available via distance […]

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 […]

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. […]

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 […]

How to Characterize IT

There is no universally accepted industry standard that defines key terms like “cloud computing,” “software-as-a-service,” “platform-as-as-service,” or “infrastructure-as-a-service.” Experts disagree on these terms’ definitions, and that points to the need to define common terms within contracts. Here are definitions used in The Tech Contracts Handbook, which provide a good starting point for most purposes. “Cloud […]

Don’t Use License Agreements for Software-as-a-Service

Many software-as-a-service (SaaS) contracts grant a “license” to use the vendor’s software. That’s a mistake. Licenses authorize making copies of on-premise software. SaaS isn’t copied, so it doesn’t need a license. And if you’re the vendor, a license can hurt you. SaaS Customers Don’t Copy Software The confusion stems from the role of “software” in […]

New Form: Customer’s ITMA (Information Technology Master Agreement)

We’ve posted a new contract in the forms library — and it’s available in MS Word (no charge, as always). It’s meant to serve as a customer’s primary contract for purchasing any and all IT (other than hardware or IaaS): namely, licensed software, software-as-a-service (SaaS), and/or IT professional services. You can use it to acquire […]

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 […]

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 […]