Privacy Law | Software as a Service (SaaS) Agreements. A Practical Guide for Negotiating SaaS Agreements

Software-as-a-Service (SaaS) has become the cornerstone of the cloud services economy. Instead of installing software on company servers, organizations now subscribe to services hosted and delivered online. This model can offer scalability, automatic updates, and seamless collaboration. The legal foundation for this commercial arrangement is the SaaS agreement. A SaaS agreement goes beyond “terms of use.” It frames the scope of services, allocates responsibility for the data, addresses service levels, and sets out how the relationship may conclude. For software service providers, it can help protect intellectual property and revenue. For customers, it can safeguard access, performance, and ownership of critical data. Well-structured SaaS agreements should define services carefully, clarify licensing, address data and outputs, ensure privacy and data security, balance liability, and plan for a workable termination.

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