You need to fix your SaaS License Agreement

Okay, I’m being cute with this title. (But not as cute as if I had titled this post “Cover Your Saas.” Sorry, I could not help myself.)

Why am I being cute? Because if you are a provider of Software as a Service” (meaning that you provide services over the internet but don’t actually deliver code to you customers), then the agreement you have with your customers should not involve the word “license” at all.

I was going to explain this in some detail, but alas, David Tollen over at The Tech Contracts Blog beat me to it by, oh, about a year and a half. Tollen explains it well, though, so I thank him for saving me the time and effort.

If you are a founder or executive at a SaaS company, I think it would be helpful to understand the distinction that Tollen lays out. 

Categorised as: Legal Issues, Software as a Service