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Software as a Service Agreements

Blacks Solicitors’ Commercial Law team regularly review and advise upon new, and existing, Software as a Service Agreements (SAAS).

A Software as a Service Agreement (SAAS)  is used when software is accessed by the user through a subscription, while the software is centrally hosted by the owner.

The end user will never receive a copy of the software or own the rights to it. However the Agreement will give the user remote access to stream the software and their right to use the software will terminate with the Agreement.

In essence this is quite simple as the provider can simply ‘turn off’ the user’s access to the software, be this mobile apps or computer software.

The user will expect security, no unwanted changes to the software, and disruptions of use kept to a minimum.

Whilst SAAS Agreements are often drafted to apply to all potential users, some providers will want to tailor each to the individual user.

There are many potential issues to consider when drafting a SAAS Agreement and each will be specific to the needs and requirements of the business as well as the type of user.

Frequently Asked Questions

Why do I need a SAAS Agreement?

Technology is playing a far more central role in the evolution of businesses. With a SAAS Agreement you will be able to provide your software quickly, safely, and in a more affordable manner to an immeasurable user base (whilst ensuring your business has the requisite protections and safeguards in place).

What is the difference between SAAS Agreements and Software Licence Agreements?

A Software Licence Agreement will be used to protect the software rights of ownership, prevent the software from being misused, or unauthorised copies being made.

In contrast, a SAAS Agreement is adopted when the user will simply be accessing the software with a subscription. The software in this instance is being provided as a service and the user doesn’t gain a right to the software itself.


Whether you are a user wanting advice on the terms of a SAAS Agreement, or a provider who wants such an Agreement drafted or amended, please email or call Blacks’ Commercial Law team today on 0113 207 0000 to find out how we can help you.

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