Software As A Service License Agreement for India

Software As A Service License Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions under which a software provider licenses and delivers its software application as a service to customers. The agreement covers crucial aspects including service access rights, data protection obligations under Indian IT laws, service level commitments, payment terms, and liability limitations. It ensures compliance with key Indian legislation including the Information Technology Act, 2000, and related data protection rules while protecting both provider and customer interests in the SaaS relationship.

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What is a Software As A Service License Agreement?

The Software As A Service License Agreement is essential for businesses providing or consuming software services in India's rapidly growing digital economy. This agreement is specifically designed to comply with Indian legal requirements, including the Information Technology Act, 2000, and related regulations. It's typically used when a software provider wants to license their cloud-based application to customers on a subscription basis, covering critical aspects such as service access, data handling, security measures, and support obligations. The document addresses unique Indian compliance requirements while incorporating international best practices for SaaS deployments, making it suitable for both domestic and cross-border arrangements.

What sections should be included in a Software As A Service License Agreement?

1. Parties: Identification of the service provider and customer, including registered addresses and company details

2. Background: Context of the agreement and brief description of the SaaS service being licensed

3. Definitions: Definitions of key terms used throughout the agreement

4. License Grant: Scope of the software license, permitted uses, and access rights

5. Service Availability and Support: Commitments regarding service uptime, maintenance, and technical support

6. Customer Obligations: Customer's responsibilities, acceptable use policy, and access management

7. Fees and Payment: Pricing, payment terms, billing cycles, and late payment consequences

8. Data Protection and Security: Data handling practices, security measures, and compliance with Indian data protection laws

9. Intellectual Property Rights: Ownership of IP, restrictions on use, and protection of proprietary rights

10. Confidentiality: Protection of confidential information and trade secrets

11. Warranties and Disclaimers: Service provider's warranties and limitations thereof

12. Limitation of Liability: Caps on liability and exclusions of certain types of damages

13. Term and Termination: Duration, renewal terms, and termination rights

14. Post-Termination Obligations: Data return/deletion and other obligations after agreement ends

15. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Software As A Service License Agreement?

1. Professional Services: Terms for additional implementation, training, or consulting services if offered

2. Third-Party Integrations: Terms governing integration with third-party applications or services

3. Disaster Recovery: Detailed disaster recovery and business continuity provisions for enterprise clients

4. Compliance with Industry Standards: Specific compliance requirements for regulated industries (healthcare, finance, etc.)

5. White Labeling: Terms for white-label or rebranding rights if applicable

6. Geographic Restrictions: Specific provisions for multi-jurisdiction usage and data storage locations

7. Service Level Credits: Financial compensation mechanism for service level failures

8. Insurance Requirements: Specific insurance coverage requirements for enterprise clients

What schedules should be included in a Software As A Service License Agreement?

1. Service Description: Detailed description of the SaaS service, features, and functionality

2. Service Level Agreement: Detailed service levels, measurement methods, and reporting requirements

3. Support Services: Description of support tiers, response times, and escalation procedures

4. Fee Schedule: Detailed pricing, including different tiers and optional features

5. Security Policy: Detailed security measures, protocols, and compliance standards

6. Data Processing Agreement: Detailed terms for processing personal data in compliance with Indian law

7. Acceptable Use Policy: Detailed rules and restrictions for use of the service

8. Technical Requirements: Minimum system requirements and technical specifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

License Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Education

Manufacturing

Professional Services

Retail

Telecommunications

Government and Public Sector

Insurance

Real Estate

Logistics and Supply Chain

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Operations

Sales

Product Development

Risk Management

Finance

Customer Success

Technical Support

Relevant Roles

Chief Technology Officer

Chief Information Officer

Head of Legal

IT Director

Procurement Manager

Legal Counsel

Software Development Manager

Information Security Officer

Compliance Officer

Contract Manager

Business Development Manager

Enterprise Architect

Operations Manager

Product Manager

Risk Manager

Data Protection Officer

Industries
Information Technology Act, 2000 (IT Act): Primary legislation governing electronic commerce and digital transactions in India, including rules for electronic contracts, digital signatures, and cybersecurity requirements
Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011: Specifies requirements for handling personal data, privacy protection measures, and security practices that must be followed when collecting and processing user data
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India, including essential elements of a valid contract
Copyright Act, 1957: Protects original software, source code, and related documentation, crucial for defining intellectual property rights in SaaS agreements
Consumer Protection Act, 2019: Provides framework for consumer rights and protection, including specific provisions for e-commerce and digital services
Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021: Specifies obligations for intermediaries and digital service providers, including due diligence requirements and user grievance handling
Foreign Exchange Management Act, 1999 (FEMA): Relevant for cross-border transactions and payment terms if the SaaS provider or customer is located outside India
Goods and Services Tax (GST) Laws: Governs taxation aspects of SaaS services provided in India, including registration and compliance requirements
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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