Have Software Agreements or SAAS Agreements Become Commoditized?

As a software attorney, I actually think about these kind of issues in relation to software agreement templates (EULA templates etc) and SAAS agreements (SAAS contract templates). My short answer is in some ways yes, and other ways no. Let me explain.

There are many websites that provide simple contracts for less than $100, and they could be a great place for a small company to start from. Of course, as an attorney, I would recommend they talk to an attorney before using the contract (to make sure it works for them, is enforceable, etc.). Some would argue that these contracts have been commoditized, and if so, perhaps this is a good thing.

However, I think there is another set of contracts which have not been commoditized and maybe this is a good thing too (complex agreements, agreements which are not self-explanatory or easily understood, and software/IT contracts). While the first few categories are easily understood, I think that software and IT contracts are very unique, and every software and IT company should remember this. In the software and IT world, the contract serves an additional purpose; it further explains what the customer will be receiving (as no tangible item is provided). These contracts play a much more important role (arguably more than any other industry) as they must also communicate, explain and describe what the seller will be providing and what the buyer should expect. For example, I propose that a license agreement for one company should not be used (without a detailed review) by another company as their licensing models may not match (license grant and metrics, warranty terms, support and renewal terms, restrictions, transferability, other unique attributes of their licensing model).

I suggest that in the software and IT world contracts have not become commoditized. I am not saying don't buy one from a site that sells them for $49, but I am saying if you do, have it reviewed by a SAAS attorney who is very familiar with contracts of that type.

Disclaimer: This is for informational and educational purposes only, and is not legal advice. Consult an attorney before making any legal decisions.

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One Response to “Have Software Agreements or SAAS Agreements Become Commoditized?”

1. Andrew says:

   May 5, 2010 at 9:53 am

   Thanks for the article. Good advice.

   Reply