SaaS Contracts Lawyer Drafting Smart Contracts and Agreements For Startups & Vendors

Saas Contracts Lawyer For Software, SaaS & Tech Service Deals

SaaS Contracts Lawyer Helping Companies All Across The USA

SaaS Contracts Lawyer Andrew S Bosin LLC for Hire in 2019 represents startups, vendors, early stage founders, entrepreneurs, developers, customers and enterprise companies in drafting Subscription Agreements, End User License Agreements (EULA), Reseller Agreements, Service Level Agreements, Software Licensing Agreements, Cloud Computing Agreements, Website Legal Agreements, Terms and Conditions, Terms of Use, Privacy Policy Agreements and Internet Contracts.

SaaS Contracts Lawyer Andrew S Bosin LLC from offices right near New York City helps clients in all fifty states across the USA.


One of the advantages Andrew has over other lawyers is that he is also a SaaS entrepreneur. With his partners Andrew built and scaled a SaaS company which was ultimately awarded a patent and was engaged in global SaaS deals in multiple countries. Andrew dedicated thousands of hours over a five period to build and scale his SaaS startup which he did at the same time he was providing legal advice to SaaS clients. There is no amount of money that anyone could have paid Andrew during this time to equate with the experience he got building his SaaS startup. Andrew's SaaS company experience is priceless and something that he draws upon every day in providing legal advice to SaaS businesses.


Not a week goes by where a SaaS startup entrepreneur doesn’t call Andrew seeking his advice about how to build and scale a SaaS business. Andrew tells them that to have a chance at successfully building a SaaS startup they need to be patient, leave their egos at the door, have the ability to raise funds, get in business with really smart, hard working people that you like and want to work with and build a product that will add value in the marketplace. Andrew tells his clients that if you talk about how much money you are going to make and the product has not yet been built that a startup is going to have a tough time attracting key talent and any serious investors.


In addition to performing all of the legal work for his Delaware C Corporation SaaS company Andrew was also personally involved in the software development, marketing, sales and capital fund raising processes. Andrew saw first hand as both an entrepreneur and General Counsel to his SaaS company how the software development process actually works with drawing wire frames and schematics and trying to get the right features built into a beta version of a SaaS application. Andrew saw every step of the software development process from initial concept to the testing of the finished product for bugs and defects. It is this organic experience in building a SaaS product that Andrew has gone thorough that enables him to draft smart and effective software development agreements for clients.


Needless to say, unlike most lawyers Andrew has risked his own money and spent thousands of hours building a global SaaS company. Building a startup from scratch from nothing more than a drawing on a napkin has enabled Andrew to give the type of broad legal advice not offered by most attorneys. 


Please call Andrew for a free SaaS contracts legal consultation at 201-446-9643.

Andrew represents SaaS, Software and Cloud vendors, startups, developer, customers and enterprise companies located in New York City, Chicago, Los Angeles, Boston, Philadelphia, Nashville, Austin, Dallas, Houston, Raleigh, Charlotte, Washington DC, Atlanta, Indianapolis, Pittsburgh, Columbus, Cleveland, Denver, Boulder, Phoenix, San Diego, Los Angeles, San Jose, Silicon Valley, Seattle, London, UK, Dublin, Amsterdam, Paris, Madrid, Barcelona, Rome, Berlin, Tel Aviv, Seoul, Tokyo, Stockholm, Oslo, Helsinki, Copenhagen, Mexico City, Toronto, Montreal, Calgary and Vancouver.


andrew@saascontractslawyer.com

  

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SaaS Subscription Agreement Attorney Andrew S Bosin LLC represents early stage startups to enterprise companies, vendors, customers, end-users and developers located alll across the USA.

SaaS Subscription Agreement Attorney Andrew S Bosin LLC can help you no matter what your legal needs are and what type of contract or agreement needs to be drafted.


Please call Andrew at 201-446-9643.


andrew@saascontractslawyer.com

  

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SaaS Contracts Lawyer Andrew S Bosin LLC helps startups, vendors & customers in all fifty states.

SaaS End User License Agreement Lawyer Andrew S Bosin LLC drafts and negotiates Software Licensing Agreements, End User License Agreements (EULA), Cloud Computing Agreements, Subscription Agreements, Master Service Agreements and Reseller Agreements for vendors, developers, enterprise companies, startups, customers and licensees

SaaS End User License Agreement (EULA) Lawyer Andrew S Bosin LLC helps clients in all fifty states.


Andrew can be reached at 201-446-9643.


andrew@saascontractslawyer.com

  

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SaaS Contract Negotiations Checklist

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SaaS Contract Checklist

A SaaS negotiations contract checklist can help you make sure you cover all of the important language, topics and sections that should be put in your SaaS Agreement. SaaS Agreements deal with software delivery that is not downloaded or installed locally. Rather, it’s accessed via the internet.


In SaaS Agreements, the availability of the software and performance monitoring is crucial. As such, SaaS contracts have to include a service-level guarantee which should set forth the minimum acceptable performance levels. The service-level guarantee should include things such as uptime, customer satisfaction, response time and more. If you fail to include minimum performance guarantees, there is a loss in value of the SaaS product to your company.


Dealing With Financial Liability in The Event of a Data Breach


SaaS providers need to take proper steps, measures and protocols to mitigate a potential data breach:


  • Be certain to properly train your personnel.
  • At the very least implement and use proper security-related technology such as multiple firewalls, encryption and an intrusion detection system.


It is critical that SaaS vendors have third-party reviews performed to certify that their security measures are more than adequate. In all likelihood, SaaS customers will try to hold the vendor liable for damages such as:


  • Data loss
  • Intrusion
  • Loss of data/Unintended disclosure
  • Breach
  • Corruption


Information and Data Security


One of the more important provisions to include in your SaaS agreement deals with data security provisions:


  • Include warranties that deal with data security, alteration and loss.
  • Allow the client the right to conduct audits and security evaluations on a periodic basis.
  • Add a requirement that the provider must comply with the client's data security procedures.
  • Create and implement a disaster  plan that includes business continuation steps, along with the provider’s related obligations.
  • Properly draft force majeure language.
  • Draft clear language regarding data ownership and return procedures.
  • State what is the provider’s obligations regarding performing backups and how often they should occur.
  • Look into what the vendor requires regarding data restoration.


Availability of SaaS Applications


Customers should have a reasonable expectation that the SaaS application will work to the same degree as if it was installed in the customer's physical location and on-site computers. If the SaaS application is not working properly or is unavailable, the customer's business could be significantly impacted and the customer could suffer losses or damages.


So it’s important to request that the SaaS vendor utilize a Service Level Agreement known as SLAs. The customer should have the expectation notwithstanding being down for maintenance that the SaaS application will be up and running 99.5% of the time.


Be Patient as There Will Probably Be Integration Issues


Unlike traditional network based software if you are an enterprise company you will likely need to integrate a SaaS application with another system, either a cloud-based or on-site one. This can be time consuming, expensive and challenging. You should budget for both time and money to integrate a SaaS application.


If the SaaS application is mission critical to your business you need to make sure there is a process in place to protect your business in the event the SaaS vendor undergoes a serious event that causes it not to be able to provide the SaaS service, such as:


  • Massive failure of service
  • Bankruptcy
  • A natural disaster, flood or fire
  • Lawsuit and pending injunction


You also need to include language in the SaaS Agreement in the event the vendor sells its business or assigns its rights under the agreement. You want to make sure that the contract states that the new owner or assignee will assume all of the duties and liabilities of the SaaS vendor.


The SaaS agreement should have clear language on how virus protection software is to be used and what happens if a virus occurs. 


If you need help negotiating a SaaS contract please call SaaS Contracts Lawyer Andrew S Bosin LLC at 201-446-9643.


andrew@saascontractslawyer.com

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Lawyer Drafting SaaS Limitations of Liability Clauses Andrew S Bosin LLC helps clients across USA.

Lawyer Drafting Limitations of Liability Clauses

Andrew has vast experience in drafting limitations of liability clauses having negotiated more than 100 SaaS, software and cloud contracts and agreements.


Andrew helps SaaS startups who start off contracting with smaller companies and typically don’t go after enterprise customers until they have a few contracts under their belt and their software works well with no problems. 


Andrew also counsels SaaS vendors who need experienced legal advice when negotiating limitations of liability clauses with enterprise customers. 


Typically, when SaaS vendors contract with small companies there is not much in the way of contract negotiations.  This is because the customer probably doesn’t understand much in the way of liabilities and what should be assumed by the vendor. And, truth be told, both parties don’t want to spend a lot in legal fees negotiating a contract. 


This all comes to an end when an enterprise customer gets their in house legal counsel involved to negotiate the vendor agreement. When it comes to liability the vendor will be requested by the customer to assume all of the possible liability that could exist for a SaaS vendor. The vendor will not be able to limit its liabilities for serving its SaaS product and maintaining the customer’s data and sensitive information. And, the customer will demand that that vendor assume all of the liabilities associated with the vendor outsourcing the hosting and serving of its application to a third party cloud managed services provider.
 

SaaS Lawyer Andrew S Bosin LLC helps clients understand how to market and sell to the enterprise.

How To Market SaaS Products To Enterprise Customers

Marketing SaaS software to potential enterprise customers takes a lot of hard work and perseverance. Selling SaaS to the enterprise bears no relation to marketing your SaaS application to smaller businesses that in all likelihood will not open up the hood and have their lawyers review and scrutinize every paragraph.


Unless you have a strong enterprise sales background there is really no type of experience that can apply to selling SaaS to enterprise customers. One of the reasons is that the SaaS sales cycle varies from that of traditional software. Typical software that is installed locally on a company’s network that is not cloud based usually needs no maintenance and as long as the customer pays the licensing fees the agreement could last for quite some time. Contrast that with SaaS software which all about the Services and the contracts could be monthly, for one year or two years. Enterprise customers demand a ton of services from their SaaS providers for things such as Service Level Agreements, support, integration, maintenance and additional software development. And, most enterprise customers will insist on an opt out of the agreement if they are not satisfied with the vendor’s services. So clearly, selling traditional software bears no relation to selling SaaS products.


A typical SaaS vendor goes through beta testing, gets some smaller customers to create revenue and then decides to go after enterprise customers. How they go about trying to market and sell SaaS products to the enterprise will likely determine their success or not. The natural thing to do because this is what most people in business do is to reach out to all of your connections in business and try to get everyone you know to use your company’s SaaS product. Even if you have no idea if the contact has any decision making authority in their company or if that person has a need for your SaaS product you will still try to sell to them. This is such a colossal waste of time.


The chances of one of your contacts or business connections actually interested in your SaaS product is probably slim to none. The exception of course is if they have a real need for your product then of course go and meet with them. The real work that needs to be done is of course identifying companies that have a need for your product. What’s even harder is trying to find the individuals at these companies who make the decision whether to use your product or not. 


Sometimes this is like finding a needle in a haystack. When SaaS Lawyer Andrew S Bosin LLC was trying to market his SaaS company’s software to enterprise customers it took a few tries the first time in some companies to find that right person who not only was interested in his company’s SaaS product but could also say yes or no. You need to ask very direct questions when trying to ascertain if that person sees a need at the company for your product and whether they are a decision maker or not. 


Some people also do searches on social media sites for certain job titles and send hundreds of emails to these people in the hopes that 10% or so will respond back. This is a slow crawl and could take months just to get 20 or 30 names of potential interested companies and decision makers. 


This also won’t get you where you need to be. What your company needs to seriously think about is subscribing to automated sales and marketing software which enables you to input hundreds if not thousands of names and this gives your company the ability to create a massive email campaign. We have all been sent these types of emails where the first one is very generalized and the second one is more specific perhaps telling us that a previous email had been sent out. This type of automated software enables your company to create templated emails that get sent out to individuals at certain points in time perhaps two weeks apart. The software should also track for those individuals who have opened up your emails and responded back to you.

  

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SaaS Contracts Law Blog

SaaS Contracts Lawyer Andrew S Bosin LLC represents software and cloud entrepreneurs, vendors, startups, developers, customers and enterprise companies across the United States

Need a SaaS Agreements Attorney?

SaaS Attorney Andrew S Bosin LLC drafts smart SaaS Agreements for clients all across the USA. From offices in New Jersey just outside of New York City SaaS Lawyer Andrew S Bosin helps cloud and software company founders, startups, entrepreneurs, vendors, developers, customers, end-users and the enterprise with drafting and negotiating SaaS Technology Services Agreements, Subscription Agreements, Master Service Agreements, End User License Agreements (EULA), Reseller Agreements, Service Level Agreements, Cloud Computing Contracts, Software Licensing Agreements and Website Legal Agreements including Terms and Conditions, Terms of Use, Terms of Service and Privacy Policy Agreements.

SaaS Contracts Lawyer Andrew S Bosin LLC is available for free consultations at 201-446-9643.


andrew@saasagreementslawyer.com

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SaaS Lawyer Andrew S Bosin LLC drafts Subscription, Master Services and End User Licenses.

Key Clauses To Negotiate In Software as a Service (SaaS) Agreements

When negotiating SaaS agreements there are certain clauses and language that vendors and customers should scrutinize closely.


1.  Customer Data.  The agreement should include clauses stating which party owns what data and how the data can be used.  For example, a clause may state that all customer data shall be owned exclusively by the customer. And, there could be a clause stating how the customer data will be utilized by the vendor in addition to utilizing the data to offer the SaaS service to the customer (i.e., using the data for statistical purposes).


2. The Service Level Agreement (SLA). Typically, SaaS agreements geared toward enterprise customers include an SLA that offers a certain minimum service commitment from the SaaS vendor to the customer (i.e., a commitment from the vendor of how much time the SaaS Service will be available and up and running).  


When businesses rely on the services offered by the SaaS vendor for mission critical business functions the SLA should specifically state the availability, or uptime of the SaaS service. Most SLAs state that the service will have an uptime percentage of at least 99.5% (usually measured monthly or annually). 


3.  Penalties. SaaS agreements especially if geared toward enterprise customers should include penalty clauses that set forth what happens when the unavailability, or downtime of the SaaS service exceeds the stated availability. What if the vendor fails to meet its service obligations?  Unless there is a penalty clause in the vendor agreement, the customer’s only remedy may possibly be termination of the agreement. However, the agreement may state that the vendor has a certain period of time to cure the breach typically thirty days and in that time frame the vendor can try to fix the issue so it is not in breach of contract. Some SLA’s state that if the vendor cannot maintain the offered uptime availability that it will provide monetary credits to customers.


4.  Data Security and Privacy. How will a SaaS vendor go about protecting the customer’s sensitive data and respond to security breaches and cyber-attacks?  The SaaS agreement should state clearly how the vendor is going to deal with these types of situations. An enterprise level customer will demand that the agreement have clauses in place stating that the vendor has put security measures and systems in place and that the security measures and systems are in compliance with applicable laws. The agreement should also state that the vendor will notify the customer immediately of any breach. 


Please call Andrew for a free consultation at 201-446-9643.


andrew@saascontractslawyer.com

  

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SaaS Lawyer Andrew S Bosin LLC drafts SaaS Agreement Warranty Clauses.

Lawyer Drafting SaaS Agreement Warranty Clauses

When a SaaS vendor is contracting with smaller non-enterprise type customers it typically does not provide for warranties in its agreements. Rather, these contracts state that the vendor is offering its SaaS product “AS-IS” with no warranties whatsoever. It’s a whole different story when a SaaS vendor starts contracting with enterprise customers.


You can be certain that enterprise customers will demand that the SaaS vendor offer a Service Level Agreement also known as an SLA which guarantees that the SaaS Service will be up and running 24/7, for a minimum guaranteed period of time such as 99.5% and if it fails to do so the customer is given a monetary credit or sometimes it can terminate the agreement. 


SaaS enterprise customers will also demand that the vendor offer integration services, implementation services, telephone and email support with agreed upon hours that the vendor must be available and the customer might also want a work for hire statement in the agreement for the vendor to create derivative versions of its software. Vendors might also be required to offer a “no-virus” warranty. 


Some enterprise customers might also want the SaaS vendor to offer a Warranty for the Subscription Service Functionality which could say something along the lines of: 


“Vendor warrants that (i) each Subscription or Application will achieve in all material respects the functionality described in the Documentation applicable to such Subscription or Application licensed by customer, and (ii) such functionality of the Subscription or Application will not be materially decreased during the Term. Customer’s sole and exclusive remedy for Vendor’s breach of this warranty shall be that the Vendor shall be required to use commercially reasonable efforts to modify the Subscription or Application to achieve in all material respects the functionality described in the Documentation and if the Vendor is unable to restore such functionality, customer shall be entitled to terminate the applicable subscription to use the Subscription or Application and receive a prorated refund of any prepaid subscription fees paid under this Agreement for its use of the Subscription or Application for the remaining terminated portion of the Term.” 

SaaS Law and SaaS Agreements

SaaS Law and SaaS Agreements legal advice offered by SaaS Lawyer Andrew S Bosin LLC.

SaaS Law and SaaS Agreements. Software as a Service (SaaS) is often referred to as cloud computing and is the next phase of modern software. SaaS clearly provides major advantages to businesses because of its cost and ease of use.

SaaS is not like traditional software that you go and purchase at a store on a disk and put on your computer. SaaS is a cloud web based application that the user accesses via the internet with the data being stored, hosted and maintained on the SaaS company’s servers not yours.
 

The best part of SaaS is ease of use and installation as there is no installation of any software on a computer. Any updates or maintenance is done remotely through the web.

Unlike a traditional software license, SaaS is based on a "subscription model". Because there is no license, the customer/end user is paying the SaaS vendor to  access the SaaS service for as long as they pay for the subscription or the contract ends or is terminated.
 

A smart SaaS vendor will build a long term relationship with its customers. This is especially important if the vendor is a high growth company and needs to raise capital. Serious investors will shy away from investing in SaaS companies that cannot demonstrate reoccurring contracts. 

Prior to entering into an agreement to use a SaaS product you should ask the SaaS vendor the following questions:
 

1) What type of data security/privacy/confidentiality measures, protections and protocols do you have in place to protect data and sensitive information?


2) How often is my data backed up? Do you have multiple backup data centers in different geographic locations?
 

3) Can I obtain my data from your servers to backup on my computer? This is important in the event the contract ends, is terminated or the SaaS vendor goes out of business. In any SaaS agreement that you sign you need to make sure you can access your data at any time.
 

4) If the subscription is canceled what does the vendor do with my data and how long of a period of time do I have to backup that information?
 

The SaaS agreement should be fair so that the customer if it is satisfied with the vendor’s services it will be motivated to renew the agreement. A SaaS subscription agreement at the very least should cover: (1) what company, the vendor or customer holds the information; (2) what personal information is stored and where; (3) how is the vendor going to notify the user of a breach; and (4) liability disclaimers.
 

SaaS agreements can reach different parts of the law including intellectual property. Most of the laws on the books are related to the security of the data and the theft of data by criminals. It is virtually impossible for a SaaS vendor to guarantee 100% that the data is secured because vendors handling large amounts of customer data usually contract out with a third party managed service provider to manage, host and serve its application. It is critical that SaaS vendors mitigate their risk by purchasing the appropriate insurance.

 

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SaaS Lawyer drafting language in agreements for the return of customer data.

How SaaS Customers Can Get Their Data Returned When The Contract Ends or is Terminated

If you are a SaaS customer and the vendor is maintaining all of your data and sensitive information you are going to want to make sure that if the contract ends or is terminated that there is a procedure in place for the timely return or exporting of your data from the SaaS vendor. Or, you might want the SaaS vendor to export all of your data to another SaaS provider.


Hypothetically, let’s say that a customer uses a vendor’s SaaS application for a year and the agreement is terminated by either the vendor or the customer. And, the customer wants to export/retrieve all of its data the vendor has been hosting, maintaining and serving. 


Can the vendor or its third party cloud managed services provider easily extract and export different forms of data ranging from typical business information to customer client personally identifiable information? Can the data be exported in csv format? Can the vendor help the customer transition to another SaaS provider or cloud managed services provider? Is there language in the SaaS vendor agreement that states how the customer’s data will be handled/stored/returned if the agreement is terminated or ends.


What happens if the customer has failed to pay all of the fees that it owes to the vendor? Is there language in the agreement that says until all fees owed are paid to the vendor that the customer’s data will not be returned to it.


Also, SaaS vendors that are also parties to healthcare Business Associate Agreements may not under any circumstances refuse to export or return data to customers if it is protected by HIPAA.

SaaS Lawyer drafting Agreements to protect SaaS vendor's intellectual property and trade secrets.

How SaaS Vendors Can Protect Their Intellectual Property In Customer Agreements

If your a SaaS vendor it does not matter if you are contracting with a small company or one that is enterprise level you will want to include an intellectual property clause related to your software code, inventions, trade secrets and confidential and sensitive information.

You don’t want a customer taking the time to reverse engineer or decompile your software code and create essentially the same product and perhaps compete with your company.


For SaaS vendors that contract with enterprise customers it is usually the customer that gets the better end of the bargain with regard to most of the language in the agreement. However, when it comes to protecting intellectual property SaaS vendors need to draw a clear line in the sand that there is no compromise on this issue.


A sample Intellectual Property paragraph in a SaaS agreement should look like this or similar to it:


“Ownership of The Subscription Service. Customer agrees that all rights, title and interest in and to all intellectual property rights in the Subscription Service, any of the related Applications and Documentation including without limitation the software used to provide the Subscription Service and any enhancements, modifications, adaptations and derivative works  (the “Subscription Service Enhancements”) of the Subscription Service made by Vendor or Customer are retained and owned exclusively by the Vendor or its licensors. In addition, Vendor shall have a royalty-free, worldwide, transferable, sub-licensable, irrevocable, and perpetual license to use or incorporate into the Subscription Service and its other product and service offerings any suggestions, enhancement requests, recommendations or other feedback provided by Customer, including Authorized Users, relating to the operation of the Subscription Service and associated services. Any rights not expressly granted herein are reserved by the Vendor. Vendor service marks and trademarks, logos and product and service names are marks of Vendor (the "Vendor Marks"). Customer agrees not to display or use the Vendor Marks in any manner without Vendor’ express prior written permission. The trademarks, logos and service marks of Third Party Application providers ("Marks") are the property of such third parties. Customer is not permitted to use these Marks without the prior written consent of such third party who may own the Mark. Except the right to use the Subscription Service and related Applications, as expressly provided herein, this Agreement does not grant to Customer any rights to, or in, patents, copyrights, Personal Database rights, trade secrets, trade names, trademarks (whether registered or unregistered) or any other rights or licenses with respect to the Subscription Service, related Applications or the software (the “Software”) used to provide the Subscription Service and related Applications. Customer shall not attempt, or directly or indirectly allow any Authorized User or other third party to attempt to copy, modify, duplicate or create derivative works from, frame, mirror, republish, reverse compile, disassemble, reverse engineer, download, transmit or distribute all or any portion of the Subscription Service, related Applications, Subscription Service Enhancements and/or Software in any form or media or by any means. The provisions of this paragraph shall survive termination of this Agreement.”

  

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Mistakes Your SaaS Startup Can’t Afford To Make

SaaS Startup Lawyer Andrew S Bosin LLC helps startups located in all fifty states.

Mistakes Your SaaS Startup Can’t Afford To Make

Building and scaling a SaaS startup is not like running a network based non-cloud software company. What are some mistakes that SaaS startups make in the enterprise customer sales and marketing processes?


  1. The Art of Negotiating An Enterprise Contract


Two of the biggest differences between regular network based software and SaaS software are service and customization. SaaS customers especially Enterprise customers demand service. Whether it's carve outs for implementation, support or maintenance or a Service Level Agreement that requires that your company’s SaaS application be up and running 99.9% of the time. The other area that startups fail to take into consideration with Enterprise clients is customization. The time between getting an Enterprise client to sign on the dotted line and actually going live using your application could be a long process. What startups fail to realize is that they are not the only piece of software that this Enterprise client is trying to test or integrate into their systems to see if there is a fit. And, there's usually a waiting line or what is known as a queue for your software to be tested and or integrated by the Enterprise company’s software Developers. During this time, Enterprise customer will likely tell the SaaS startup that it requires customization either on the front or back end and that the SaaS application will not go live with the customer using it until this customization has been completed, tested and integrated into  the Enterprise company’s systems. The next problem that arises is who is going to pay for all of this customization. Likely, the Enterprise customer is going to tell the start-up that they are going to eat the cost of the software development customization. It is at this critical moment where SaaS startups fail to Pivot correctly and tell the Enterprise customer that in exchange for the start up eating the cost of the software development customization that it requires the Enterprise customer to sign a longer deal, let's say for 2 years. Make no mistake about this negotiation in that it will not be easy. SaaS startups deal with a ton of egos regarding Executives that work for Enterprise companies that are not use to startups telling them how the contract is going to be negotiated. If the Enterprise customer gives push back as to the length of the contract you need to regroup and pivot and get the best possible terms you can from the customer. The reason being is that SaaS startups make the fatal mistake in believing that even if a customer uses their product for let’s say three months or six months that it’s a win-win. This thinking can be fatal to the survival of a SaaS startup. The reason being is that if you are going to need additional Capital funding and are looking to pitch VC’s or serious investors you're going to have a tough time getting money if you cannot demonstrate enterprise contracts with lengths of 1 to 2 years with clients renewing these contracts.


2. Your SaaS Startup Needs To Own All of Its Intellectual Property 


One of the biggest things that your SaaS startup needs to discuss internally before entering into contract negotiations with a SaaS Enterprise customer is whether or not you are going to allow derivative versions of your SaaS software to be developed by either your company or the Enterprise customer. What does this mean? It means unlike network-based non-cloud web software SaaS software can be for lack of a better word changed on the front and back-end to suit the client's needs whether this is a single sign-on or changing the look and feel of the software so it fits in with the strategy of the Enterprise customer. Although you might lose some potential sales after having this discussion with enterprise companies it is absolutely critical that your company make it clear that whatever derivative version of your SaaS application or product are created that your company owns all of the intellectual property and source code related to such changes. Why is this important? It's important because it is likely that some of the changes requested by one Enterprise customer are going to be the same type of changes requested by another customer. If you don't spell out in an Enterprise agreement that your company owns all the intellectual property for whatever version of the software is created it is likely that if you do the same type of changes for another Enterprise client that the first Enterprise client is going to come back and put you on notice and tell you that they own all of the intellectual property and ideas related to the derivative version of the software that has been created for them. The last place that you want to be as a young growing SaaS company is to have any part of your intellectual property owned by a customer. The only caveat here is if the enterprise customer becomes an investor and provides some serious capital funding so that your company can get the next level. With that being said, this is going to require some serious contract writing to make sure that your company owns the bulk of its intellectual property.


3.  SaaS Startup Founders Need To Leave Their Egos At The Door


Another mistake SaaS startups make unfortunately is co-founder ego. Just because you have been successful in whatever business ventures you were in does not translate into successfully building and scaling a SaaS company. All too often SaaS startups drink their own Kool-Aid and believe that they have created the greatest product that ever existed and that they will have absolutely no problem selling their SaaS product in the marketplace. This creates several problems. First, ego gets in the way of looking at the marketplace and you figuring out who your competition is and whether or not your company should be worried. Second, ego prevents SaaS startups from determining whether or not their product has a chance of being successful in the marketplace and whether or not it provides value to a certain segment of the business world. Third, ego will always get in the way of an opportunity to pitch serious VC’s or investors. Serious investors are not going to want to get into business with your company if you or any of your co-founders act like a spoiled, petulant child. While you need to be confident about your company at a pitch meeting you also want to leave your ego at the door.


4. Don’t Hire for The Sake Of Hiring


Another huge mistake that SaaS startups make is overloading their company with co-founders or hiring people in the early stages that are unnecessary and don’t really have the funds to expend. All too often startups with good ideas will walk into investor pitch meetings with six to nine people and there's a good chance that some of these individuals that their roles have not even started and might not come into focus for another year. Hypothetically, a SaaS startup hires a head of sales when their product has not even been developed and the sales and marketing processes probably won’t commence for another six to eight months. The moral of this story is don't have a ton of co-founders if the co-founders can't add value today from day one.


This is just a sampling of some mistakes that startups make and it's not an exhaustive list. This is also not legal advice. If you need legal advice please call Andrew at 201-446-9643.


andrew@saascontractslawyer.com

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SaaS Reseller Agreements Lawyer Andrew S Bosin LLC helps clients all across the USA.

Reseller Agreements

SaaS Lawyer Andrew S Bosin LLC drafts and negotiates Reseller Agreements for vendors, resellers, customers and end-users.


Andrew represents clients in all fifty states and charges affordable, low cost legal fees packages.

  

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Software Contracts Lawyer drafting Data Processing Agreements (DPA) that comply with EU GDPR law.

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Software Attorney Andrew S Bosin LLC drafts and negotiates Data Processing Agreements for compliance with the EU's GDPR law.

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  • Improve the services that we offer.

From time to time we will contact you to provide you with information on our services or events that we think may be of interest to you. We will not contact you with such marketing communications unless you have consented to such contact or we have a legitimate interest, for example, if our contact relates to services that we have already provided to you. You have the right to ask us not to process your personal information for marketing purposes at any time. You can exercise your right to prevent such processing by:

  • Replying directly to the marketing message;
  • Unsubscribing from marketing messages by clicking the appropriate link in any email you receive; or
  • Contacting: andrew@saascontractslawyer.com
  • We may use or otherwise process your personal information on the grounds of one or more of the following lawful bases for processing:
  • Your consent;
  • For the performance of a contract with you, including for provision of our legal or other services, or to take steps at your request prior to entering into such a contract;
  • To comply with our legal obligations; or
  • Because of our or your legitimate interests in:
    • Providing you legal advice, representation, or services,
    • Ensuring the quality of the services we provide to you, or
    • Communicating with you.

When We Share Your Personal Information

We may share your personal information with others, under the following circumstances:

  • We will provide your personal information to our service providers to allow them to assist us with delivering the legal and other services that you have requested, such as:
    • Accountants,
    • Auditors,
    • Credit reference agencies,
    • Information technology and information security providers,
    • Legal service and technology providers, or
    • Records management providers.
  • We will share personal information with law enforcement agencies, governmental authorities, or regulators where we are under a duty to disclose or share such information in order to comply with any legal or regulatory obligation, or if we reasonably consider that this is necessary to help prevent or detect fraud or other crime or to protect the rights, property, or safety of Andrew S Bosin LLC, our clients, or others; or
  • We will disclose personal information if you have consented to any disclosure to a third party, including as part of our providing you legal advice, representation, or services.

Where We Transfer, Use, and Store Your Personal Information

Transfers to our third party service providers are to enable them to use and store your personal information on our behalf.  We will endeavor to make sure that third party service providers offer your personal information the same level of protection as granted by us in this notice.  We also ensure that, that if your information is transferred to any country outside the EEA, this is done in compliance with relevant data protection legislation. You can request further details by contacting andrew@saascontractslawyer.com

How Long We Keep Your Personal Information

We will keep your personal information only for as long as necessary depending on the purpose for which it was provided.

When determining how long we will keep your personal information, we will take into account various factors, including: 

  • Legal obligations under applicable law to retain data for a certain period of time;
  • Statute of limitations under applicable law(s);
  • Status of ongoing legal engagements;
  • Your withdrawal of consent (where applicable);
  • Potential disputes; and
  • Guidelines issued by relevant supervisory authorities.

How We Protect the Security of Your Personal Information

We have put in place measures to protect the security of your personal information.

These measures are intended to prevent your personal information from being accidentally lost, altered, disclosed, or used or accessed in an unauthorized way. In addition, we limit access to your personal information to only those employees, agents, contractors, and other third parties who have a business need to know. They will only process your personal information on our instructions and they are subject to a duty of confidentiality.

We have procedures to deal with any suspected data security breach and will notify you and any applicable regulator of a suspected breach where we are legally required to do so.

Unfortunately, the transmission of information via email is not secure. Therefore, if you use email for communicating with us, we cannot guarantee that it will remain confidential while in transit.

Do Not Track Disclosure

Your browser may offer you a “Do Not Track” option, which allows you to signal to operators of websites and web applications and services (including behavioral advertising services) that you do not wish such operators to track certain of your online activities over time and across different websites. Our Services do not support Do Not Track requests at this time.

California Privacy

Under California Law, California residents have the right to request in writing from businesses with whom they have an established business relationship, (a) a list of the categories of Personal Information, such as name, email and mailing address and the type of services provided to the customer, that a business has disclosed to third parties (including affiliates that are separate legal entities) during the immediately preceding calendar year for the third parties’ direct marketing purposes and (b) the names and addresses of all such third parties. To request the above information, please contact us through our contact form or at the addresses above.

CAN SPAM Act

The CAN-SPAM Act is a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have emails stopped from being sent to them, and spells out tough penalties for violations.

We collect your email address in order to:

  • Send information, respond to inquiries, and/or other requests or questions.
  • Market to our mailing list or continue to send emails to our clients after the original transaction has occurred

To be in compliance with CAN SPAM we agree to the following:

  • NOT use false, or misleading subjects or email addresses
  • Identify the message as an advertisement in some reasonable way
  • Monitor third party email marketing services for compliance, if one is used.
  • Honor opt-out/unsubscribe requests quickly
  • Allow users to unsubscribe by using the link at the bottom of each email

If at any time you would like to unsubscribe from receiving future emails, you can follow the instructions at the bottom of each email and we will promptly remove you from all correspondence.

Special Rules For Children. 

Because of federal law, we are not permitted to knowingly collect any personal information from a child under the age of thirteen without the consent of that child's parent or guardian. The statements in this Privacy Policy about our collection and use of personal information also apply to our treatment of personal information from children under the age of thirteen. Some elements of our Services such as signing up for our Services require the submission of a payment card number along with personal information in connection with a purchase; other elements of our Services require the submission of personal information to access or use the Services. Except in certain cases where limited contact information may be collected and not retained, these elements of our Services are not available to children under the age of thirteen. If a child who we know to be under the age of thirteen and for whom we have not received parental consent attempts to utilize a service on our Services which is not available to children, he/she will not be able to access it and may receive a message which relays that he/she is not eligible for such feature.

Your Rights

Under certain circumstances, and subject to legal conditions, you may have the right to object to processing of your personal information, to request a copy of the personal information about you which we hold, or to request correction or erasure of such personal information. 

While you will usually not have to pay a fee to exercise these rights, in some cases, we may charge a reasonable fee if your request for access is clearly unfounded or excessive, or if you request multiple copies of the same information. Alternatively, we may refuse to comply with the request in such circumstances. We may need to request specific information from you to help us confirm your identity and ensure your right to access the information or to exercise any of your other rights.

Please contact us at andrew@saascontractslawyer.com if you wish to exercise any of these rights, if you wish to request further information about any of the above rights, or if you are unhappy with how we have handled your personal information. 

Changes to Our Privacy Notice

We keep our Privacy Notice under regular review. Any future changes will be reflected within an updated version of this "Privacy Notice" and will be available on our website. Where appropriate, we may directly notify you of changes by email.

Contacting Us

It is important that the personal information that we hold about you is accurate and current. Please keep us informed if your personal information changes during your relationship with us.

If you ever have any questions, comments, or complaints about this notice or any of its contents, please contact us at andrew@saascontractslawyer.com and we will be pleased to assist you.