What Does Your Software EULA or Software as a Service Agreement Say About Your Company?

What Does Your Software EULA or Software as a Service Agreement Say About Your Company?

Interesting question. When a software, software as a service or other IT company sends its written software EULA or software as a service agreement to the customer as part of closing a deal, it is really telegraphing a message about the company and its sophistication. As a software copyright attorney, I actually think about this stuff.

The wrong message/impression would be:

1. Is this company for real?
2. This contract seems too complex?
3. I don’t understand what they are providing and what we are responsible for?
4. I need to send this to the legal department or to outside counsel?
5. I will read this later; maybe on Friday.
6. It looks like they bought this on the web for $29.
7. I think they wrote it themselves.
8. I am not sure this company knows what they are doing?
9. Is this their first sale?

None of those messages/impressions would be a good thing or help the agreement move through the process.

 

Here is what your EULA,  SAAS contract should be telegraphing about your company.

1.They are serious about this!
2. I understand their pricing/licensing/services model. It is very simple.
3. They seem to be transparent about the way they work and their revenue model.
4. Looks like they know what they are doing.
5. I bet they sell a lot of this stuff.
6. Looks like they have vetted this agreement, and will stand behind it.
7. This looks fair, and I am going to approve/sign it.
8. I don’t see any tricks in here.

So, what does your agreement say about your company?

Read your agreement and find out, at least before your customer does.

TAKE THIS QUICK TEST: Read this 2 page IBM NDA agreement and see what it telegraphs about IBM. IBM NDA.

Why aren’t your customer facing agreements this simple?

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4 Comments
    • Hari, 

      Thanks for the email. I don’t provide copies of my agreements (other than to clients as part of an engagement with them), but I am happy to discuss this further with you on a call. Let me know. Thanks, 

      Jeremy

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