San Jose SaaS Lawyer
If software-as-a-service (SaaS) products are offered by your startup, you may have to deal with additional planning of processes and procedures on top of your normal business formation filings.
In these cases, it’s almost always recommended to have an attorney on hand who has experience in all matters of business law as they pertain to SaaS products and transactions.
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What Does a SaaS Lawyer Do?
Because most SaaS products operate on a subscription model, the bulk of a SaaS lawyer’s responsibilities revolve around the drafting, revising, and reviewing of various contracts and agreements. This includes:
- Subscription Agreements. This not only comprises a subscriber relationship between the user and your company, but in cases of wide corporate deployment, may detail terms of use on a wider, more general scale to encompass a whole business.
- Terms of Service Agreements. This can be separate from official subscription agreements, detailing the specific terms in which a user is allowed to access your product.
- Sales/Vendor Contracts. If you’re running a business that offers SaaS products in a B2B capacity, contracts officially designating the transaction between you and your clients must be drawn up to your specifications.
Additionally, SaaS attorneys can provide any general review of existing contracts to supplement your legal efforts. If any in-house counsel has already drawn up contracts according to your specifications, an attorney specialized in SaaS law can provide another set of eyes to review your contract, ensuring that there are no shortcomings or glaring oversights.
Depending on the service, a lawyer may also be able to assist with any vendor support throughout the duration of the client relationship. By drafting comprehensive documentation of any known issues or questions of use of the product, a legal professional well-versed in SaaS may end up saving you the potential of legal headaches further down the line.
SaaS Agreements Can Be More Complicated Than Initially Thought
Although a SaaS agreement may initially seem like just another terms of service/use agreement, the unique nature of a SaaS product mean it must address unique issues that may come to light throughout the duration of its use.
Beyond pricing, terms of use, and other typical factors in a product agreement, a client may require a SaaS contract to include:
- Performance. What is the minimum acceptable level of performance factors, such as speed, response time, availability across platforms?
- Confidentiality. If users input their personal data into a service, who is allowed to access that data, and who actually owns the data?
- Loss of Data Measures. If there is a system failure, is all of our data lost? How often is data backed up?
- Security. What safeguards or contingencies are in place in case of a data breach or system failure?
- Support. If a customer or employee has an issue with the product, what is the proper course of action to resolve that issue?
- Liability. In the event that the product results in irreparable harm to a company, who is liable for the damages?
With numerous provisions and clauses that can be negotiated, a SaaS agreement can quickly turn incredibly intricate and complex.
Is a SaaS Lawyer Necessary?
Although a business attorney isn’t explicitly required in a typical business, it is heavily recommended in one that specializes in SaaS products.
- The sheer number of components in contracts and agreements regarding SaaS products can be overwhelming to someone without years of relevant legal experience.
- There is a large body of regulatory oversight that SaaS agreements must follow – doubly so if your product is primarily web-based. A SaaS lawyer can ensure your contracts comply with all federal and state regulations.
- When your products are being sold to other companies, the terms of an agreement can often be up for negotiation. An experienced SaaS lawyer can help advise in these situations and understand the proper course of action for any and all negotiations to ensure your company is not ultimately taking a loss.
- A SaaS lawyer can be invaluable in situations where the terms are violated, allowing you to protect your company from any financial or other harm – and potentially pursuing any other involved parties for violating your terms of service.
A SaaS lawyer is highly recommended for a business who primarily profits from SaaS products.
