The SaaS agreement often contains a "Prohibited Uses" clause that causes a user to lose their license or access. Here we find things like illegal use of software, use to spam or harass other customers and install Trojans and viruses. For more information on what should be included in a SaaS agreement, check out our webinar on important terms in IP`s SaaS contracts, Commercial and Technology Associate Ed Kilner. Negotiating the SaaS agreements is important for you to enter into a well-developed contract. SaaS services allow customers to access the application or software from anywhere, while data is stored by a vendor. These agreements have become, for many companies, trusted digital platforms to provide a unique platform for their customers and employees. Given the industry trend at SaaS, potential new business creators will want to know the pros and cons of using a SaaS approach for their business. This is certainly not without its drawbacks – for example, many SaaS companies suffer considerable losses in the early stages of their development, because the investments that are made to acquire a first customer base are only slowly recovered by regular subscriptions. However, for other, perhaps most important, reasons, SaaS is calling on many consumers to pay a regular fee for remote access rather than a single plan to install expensive licensed software, especially now that near-availability of Internet access has become the norm in most developed economies. The era of expensive licensing and single-purchase software could be over.

5. Damages and interests and limitation of liability. Compensation and liability limitations are relevant for the purposes of a major business transaction, and the same applies in the context of a SaaS. Here, among the most frequently addressed topics include intellectual property violations and, if the provider saaS to store customer data that are confidential or proprietary, or to store in one way or another, security violations. Regardless of the scope of each party`s compensation obligations, these provisions can and should be read at the same time as the limitation of liability clauses of the agreement, which aim to limit the general liability of one or both parties in the framework of the agreement. Chances are good if you use SaaS, you will end up having some problems that will cause a need for support. Maybe you`re not able to figure out how to use a specific program function, or maybe the platform isn`t talking to your computer network, or maybe the software just has errors or availability issues.

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