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If you purchase software, you are usually presented with a software contract by the provider. Do not sign it immediately, but review it carefully first. Pay particular attention to four points: the right of use, maintenance and availability, liability, and the agreements regarding your data and the termination of the contract.
Tip 1: check the right of use
A software contract usually grants you a right of use, not ownership. Look closely at the scope: how many users, which modules, for what use, and in which area? And are you allowed to use the software as you grow? A right of use that is too limited will cause problems later on.
Tip 2: pay attention to maintenance, updates, and availability
Software must be maintained and remain available. Check what the provider promises regarding updates, support, and availability (uptime), preferably set out in an SLA. Also check what happens in the event of outages and what the consequences are if the provider fails to meet the agreements.
Tip 3: Assess liability
Providers often extensively limit their liability. Assess whether that limitation is reasonable, especially if you are heavily dependent on the software. An exclusion that is too broad will leave you empty-handed if something goes wrong. Negotiate this where necessary.
Tip 4: Arrange your dates and the exit
Your data is valuable. Stipulate that you remain the owner of your data, how and in what format you will receive it back upon termination (exit), and when the provider will delete it. If the provider processes personal data, you need a data processing agreement. This prevents you from being left without your data at the end.
Frequently Asked Questions
Will I become the owner of the software?
Usually not: you acquire a right of use. Check the scope of it carefully.
What should I look out for regarding liability?
Regarding the degree of exclusion. An overly broad restriction is risky if you are heavily dependent on the software.
How do I manage my data?
Stipulate that you remain the owner, how you will recover your data upon termination, and enter into a data processing agreement for personal data.
Have a software agreement reviewed?
Our legal experts review your software or SaaS agreement and SLA. View our contract lawteam or schedule a free consultation.
