Have you Had your Software EULA/SAAS Contract Tune-up?
October 8, 2010
You know, you adjust your contracts to improve their performance. Ok, let me explain. Any business seeking growth capital or a venture capital investment should take a look a their revenue generating contracts to see whether they are consistent with their current model, pricing, go to market strategy, etc., as too often this is forgotten. Look, I know legal issues and contracts are not top of the mind for most executives as part of their business growth strategies, but don’t overlook it.
My tune-up ideas are:
1) At least once a year, whenever you make a change to your model or come out with a new offering etc., think about whether you need to change/tweak your software EULA or SAAS contract.
2) When you do take a look, think about whether you can simplify, shorten and make your agreement more transparent. That is the trend in contracting for software and SAAS, so don’t forget it.
3) As with cars, there is no one size-fits-all tune-up (I hope you knew that), so there is no one size fits all tune-up for your agreements either. Figure out what is new or different, and fix it/improve on it.
Just a few thoughts from a software attorney.