Starting a SaaS business is an exciting prospect. But to make the company a success you need to hire the right staff. One of the first people you bring on board should be a SaaS licensing attorney. Let’s take a closer look at why this lawyer plays such a critical role in your organization.
The Basics Of SaaS Licenses
A SaaS license is simply the agreement you are making with the people using your software. It lays out the rights that your customers will have. This clearly outlines the services they will receive. The contract can also go into areas like customer support standards and uptime expectations. It also sets out the obligations your users need to follow. This includes everything from the ways fees are structured to the consequences of misusing the software.
Importance Of Hiring An SaaS Licensing Attorney
Building a SaaS business can be a difficult legal journey. Making a mistake can end up being costly. That’s why it’s important to choose a strong SaaS license attorney to protect you. Here are some of the things that they will do:
- Helping to draft the contract. Writing a SaaS contract can be tricky. You’ll need to outline the services that customers will recieve. However, the contract also needs to be strong enough to protect your company from harm. This can mean setting limits on what the software can be used for and who can use it. Plus, you’ll usually need to add some flexibility to the contract. This allows customers to upgrade or downgrade their service levels easily. You might need to rely upon these contracts in a lawsuit, so it’s important to make sure that they are airtight.
- Setting out termination rules. Sometimes, you will need to cancel a user’s subscription. The contract will need to clearly set out the circumstances in which this can occur. You’ll also need to outline the rights the user has, like whether or not they will get a warning. Getting this part right is critical. If there are flaws in this section of the contract, you can expect expensive lawsuits from upset users.
- Protecting IP. Unlike physical items, which require machines to manufacture, replicating software just requires an understanding of coding. Strong IP protections will ensure that people can’t rip off your ideas.
But there is another element of IP protection to consider. You’ll need to clearly what happens to the IP that a customer creates when using your software. Sometimes, this is theirs to use in perpetuity. At other times, though, the IP they created reverts back to you when they cancel their subscription. Your lawyer will help outline these rules in the contract.
- Complying with data protection law. You might need to gather sensitive customer information for your SaaS to operate effectively. If these details get leaked you will lose customer trust and face severe legal penalties. Because of this, there are strict laws in place that govern the type of information you can gather and how it has to be stored. Your SaaS license attorney will be familiar with these legal provisions. These laws will change over time. Your attorney can monitor these changes and ensure that you are handling data properly.
- Protecting your legal rights. Once you have written a contract, you’ll still need help enforcing it. Because of the length and complexity of SaaS agreements, you’ll require a skilled SaaS license attorney to help you.
As you can imagine, SaaS contracts can get very complex. It’s not uncommon for them to stretch for hundreds of pages. Drafting them properly will require a specialized SaaS licensing attorney.
Finding A Good SaaS Licensing Attorney
The good news is that finding a SaaS licensing attorney won’t be tough. A quick Google search will bring up dozens of results. But it’s worth shifting through these options to find someone who will suit your company. These are some of the things that you should be looking for:
- Level of experience. SaaS agreements present a high degree of difficulty. You’ll need to hire someone who is well-versed in contract law. In particular, you should look for someone who is used to working with SaaS companies.
- Communication ability. Your lawyer should be able to break down the complexities of the SaaS contract into simple English. This is particularly important when you are facing a lawsuit.
- Knowledge of IT. You don’t need your SaaS licensing attorney to be a skilled programmer. But it will help if they have a good working knowledge of the IT landscape.
- Price. Check that your budget can handle the legal costs of your lawyer.
Conclusion
A SaaS license will form the bedrock of your company. If you don’t draft it properly, you will experience future legal nightmares, as users look to exploit loopholes. That’s why it makes sense to turn to a seasoned SaaS licensing attorney. They will use their experience to produce a watertight agreement that will protect your business interests. Hopefully, you now have all the information you need to start your search for a SaaS lawyer.
