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In the fast-paced world of Software as a Service (SaaS), your terms and conditions aren't just fine print; they are the foundational pillars of your business model. A well-crafted T&C document not only protects your business but also fosters trust with your users. As a startup, this is your playbook for creating T&Cs that resonate with success.

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SaaS Contract Types

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There are two primary formats for SaaS contracts:

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Online Contracts

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• Clients sign up and agree to standard Terms & Conditions (T&Cs) online

• Easy to administer but less flexibility

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Offline Contracts

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• Customised, client-specific hard copy contracts

• Allows bespoke terms but more administrative work

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Many SaaS businesses use a combination by having standard online T&Cs along with custom offline contracts for larger clients.

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Key SaaS Contract Considerations

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Well-constructed SaaS contracts address:

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• Onboarding: How users sign up and new seats are added

• IP & Data: IP ownership, data generation and usage terms

• Privacy: Privacy promises, obligations, and consent requirements

• SLAs: Service level commitments and remedies for issues

• Risk Management: Liability exclusions, caps, and adequate insurance

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Other major factors include:

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• Customisation: Contracts tailored to your specific offering and processes

• Scalability: Ability to expand and evolve contracts as your startup grows

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Handling IP & Data

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SaaS contracts should define:

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• IP Ownership: Who owns IP rights in your proprietary software

• Data Rights: How usage data generated is accessed and owned

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Also consider formally protecting IP like your brand name and logos through trademark registration.

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Privacy Obligations

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Outline promises and consent requirements around:

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• Data collection, usage and sharing

• Geographic or industry-specific privacy regulations

• Security safeguards and breach notification procedures

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Adopt a "privacy by design" ethos by building data protection into your SaaS from the start.

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Service Level Agreements (SLAs)

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• Define performance metrics like uptime guarantees

• Service credits or remedies for issues like prolonged outages

• Testing to confirm you can realistically meet SLAs

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Robust SLAs help manage customer expectations and prevent disputes.

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Limiting Contractual Risks

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• Liability caps - limit overall legal exposure

• Exclusions - carve out types of liability like IP infringement

• Insurance - ensures coverage for gaps not addressed in contract

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Get in touch if you need support ensuring your SaaS contracts check all the legal boxes while powering your success. Our startup-savvy legal team is here to help!