SaaS agreement template – what you need to know.
The basics: In simple terms, a software as a service agreement (or SaaS agreement) outlines the terms under which a particular SaaS software application can be used. This agreement identifies the specific software the end-client would be able to access, alongside the terms under which they’re able to use it.
Between supplier and customer: A SaaS agreement is a contract that governs the terms between a software supplier and a customer. The supplier provides the services to the customer via a network (typically the internet) and hosts the software remotely, typically relying on third-party processors such as hosting providers to do so. This allows the supplier to easily update and control the software from one site (usually, data is uploaded to the “cloud”). The user can then directly access the software on their internal equipment (as the SaaS agreement incorporates a licence to do this), on a pay-by-use or subscription basis.
For a more in-depth dive into SaaS agreement templates and why they matter, check out this comprehensive guide.
Why document your use of software?
Risk of unexpected restrictions: For customers purchasing software as a service, it is important to clearly set out the scope of their rights to use that software in a SaaS agreement. Particularly where a customer is procuring business-critical software, unless the scope of the licence is clearly defined, there is a risk that the software supplier could suspend or restrict the use of the software which could have a major impact on the customer’s business. The SaaS agreement should set out how long the customer is entitled to use the software, to allow for continuity of use.
Protecting rights in the software: It is equally important to document the terms relating to the provision of software for software suppliers to ensure that: (i) their software is not exploited; (ii) it is clear when and what the supplier gets paid for licensing the software; and (iii) the supplier’s rights in, and ownership of, the software are protected. The SaaS agreement template will set out clear rules and restrictions on the use of the software by the customer and its authorised users.
What are the key benefits of using Docue's SaaS agreement template?
To establish clear ownership and licensing terms: A SaaS agreement template sets out the licensing terms, usage restrictions and intellectual property ownership of the software. This helps establish the rules that govern the use of the software, sets clear boundaries and ensures that both parties understand their rights and obligations under the agreement.
To mitigate legal risks: By having a written SaaS agreement in place, both parties can reduce the legal risks associated with the use and distribution of the software. With a clear understanding of how the software can be used, the agreement helps clarify issues such as liability and warranties. This SaaS agreement template also includes an optional intellectual property rights indemnity in favour of the software provider. For more information about warranties and indemnities, check out these FAQs.
Terms automatically in your favour: This SaaS agreement template contains alternate clauses depending on whether you are the supplier of software or the customer receiving the software. This means that it is tailored to protect your interests as either customer or supplier.
This SaaS agreement template contains alternate clauses depending on whether you are the supplier of software or the customer receiving the software. This means that it is tailored to protect your interests as either customer or supplier, and fully customised for your business.
Fully customisable: This SaaS agreement template can be easily tailored to meet your specific needs. By answering a series of questions, Docue will automatically generate a bespoke SaaS contract that is customised for your business and software that will be licensed.
Clearly define pricing: It includes provisions that allow for different pricing structures, i.e. a fixed upfront fee or ongoing fees payable on a subscription basis. This adaptability enables you to define the correct pricing model in the SaaS. agreement template that aligns with your business strategy and meets the needs of your customers.
Up-to-date compliance: By using this SaaS agreement template, you can have peace of mind knowing that your SaaS agreement reflects the latest laws and regulations. This SaaS agreement template is regularly reviewed and updated by qualified lawyers to ensure compliance with relevant laws and regulations. This helps you stay up to date with current legal requirements and mitigate the risks associated with non-compliance.
Why use Docue's SaaS agreement template?
Key provisions: This SaaS agreement template is a key contract for both parties and allows a business to distribute software access in an efficient manner. This SaaS agreement template contains key provisions in relation to:
- the customer’s rights to use the software as a service;
- restrictions on the use of the software;
- intellectual property right protections;
- the fee structure and payment terms;
- limits on the supplier’s liability; and
- software warranties and disclaimers.
If you’re ready to create your own contract using this SaaS agreement template, but want more information about the clauses that are essential to protect your business, take a look at this checklist.
You can also include support services: The SaaS agreement template also contains optional clauses to cover the provision of support services relating to the SaaS (e.g. support relating to installation, maintenance and fixing bugs/issues/errors) by the software supplier to the customer, if required.
Assumptions: This SaaS agreement template assumes that the relationship between the parties is B2B, and that the agreement is subject to English Law and the English courts.
Other software agreements
When should the software licence agreement template be used instead: If the software is being accessed via the customer’s own system (as opposed to from the supplier’s systems (or via a cloud-based platform)), the Software Licence Agreement would generally be more appropriate.
For a deeper dive into the key differences between these types of software contracts, check out this blog, or listen to this podcast for a jargon-fee break down!
When should the software licence agreement template be used instead: If the software is being accessed via the customer’s own system (as opposed to from the supplier’s systems (or via a cloud-based platform)), the Software Licence Agreement would generally be more appropriate.
When should a EULA be used?: In addition to using a SaaS agreement template with a customer, SaaS providers often ask end users to agree to an End-User Licence Agreement (EULA). A EULA is a contract between the SaaS provider and the end user that outlines the terms and conditions for using the software or service.
The EULA establishes a legal agreement between the SaaS provider and the end user, ensuring that both parties understand their rights and obligations. It helps protect the interests of the SaaS provider and sets out the rules and restrictions for the use of the software or service by the end user. Docue’s EULA can be used B2B and B2C. For more information about the key differences between SaaS or software licence agreements and EULAs, check out this comprehensive guide.
When should an API licence agreement be used?: If the software owner will be granting a licence to an application programming interface (API), then an API licence agreement would be a suitable template. This template sets out the terms and conditions of access and use of the API by a software developer.
Do you still have questions about our SaaS agreement template? Check out these 6 frequently answered questions, where our legal experts uncover the top SaaS agreement template queries.
Why Docue?
Quick and simple to use: With Docue, you can create a top-quality SaaS agreement in no time. The SaaS agreement template includes model clauses designed by qualified lawyers to help you draft the contract yourself and tailor it to your needs. Creating legal documents has never been easier, allowing you to focus on what you do best—building and growing your business.
Full contract process: Once you have created a contract that is tailored to your business using the SaaS agreement template, you can send the contract to the other party for e-signing. In addition to collecting signatures electronically, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Transparent pricing: At Docue, we believe in providing transparent and cost-effective pricing options for our services. We understand that affordability is a key consideration for businesses of all sizes. That's why we offer competitive and transparent pricing plans tailored to meet your specific needs. With our pricing structure, you have the flexibility to choose a plan that aligns with your budget and requirements. We provide clear and upfront information about our pricing tiers, ensuring there are no hidden fees or unpleasant surprises along the way!
Sign up for a free trial today, and see just how easy it is to streamline your contract process!
Tags: SaaS agreement template, SaaS agreement, SaaS contract, software as a service agreement, software subscription
