Software As A Service Subscription Agreement Template for India

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Key Requirements PROMPT example:

Software As A Service Subscription Agreement

"I need a Software As A Service Subscription Agreement for my Indian IT company that will provide cloud-based project management software to small and medium businesses, with standard data protection clauses and monthly subscription billing options."

What is a Software As A Service Subscription Agreement?

This Software As A Service Subscription Agreement is designed for use in the Indian market where cloud services are rapidly growing and require specific legal compliance measures. The document serves as a comprehensive framework for businesses providing or subscribing to cloud-based software services, ensuring compliance with Indian regulations including the Information Technology Act, 2000, data protection rules, and consumer protection laws. It is particularly relevant for organizations transitioning to cloud-based solutions or expanding their digital service offerings. The agreement covers essential aspects such as service access rights, data handling, security measures, service levels, and support commitments, while incorporating necessary provisions for cross-border data transfers and local compliance requirements.

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

1. Parties: Identifies the contracting parties - the SaaS provider and the subscriber, including their registered addresses and company details

2. Background: Provides context for the agreement, describing the nature of the SaaS service and the parties' intention to enter into the subscription arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Service Subscription: Details the grant of access rights, scope of subscription, and authorized users

5. Payment Terms: Specifies subscription fees, payment schedule, billing procedures, and late payment consequences

6. Service Provider Obligations: Outlines the provider's responsibilities including service delivery, maintenance, and support

7. Customer Obligations: Defines customer responsibilities including acceptable use policies and access management

8. Data Protection and Privacy: Addresses data handling, privacy compliance, and security measures as per Indian IT Act and Rules

9. Intellectual Property Rights: Establishes ownership of IP and usage rights for the service and related content

10. Confidentiality: Defines confidential information and obligations for its protection

11. Term and Termination: Specifies agreement duration, renewal terms, and termination circumstances

12. Service Levels and Support: Defines service availability commitments and support procedures

13. Limitation of Liability: Sets boundaries for liability and includes necessary disclaimers

14. Force Majeure: Addresses circumstances beyond parties' control affecting service delivery

15. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for dispute resolution

16. General Provisions: Includes standard boilerplate clauses like notices, assignment, and entire agreement

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

1. Professional Services: Include when additional implementation, training, or consulting services are part of the agreement

2. Disaster Recovery: Include for critical services requiring specific disaster recovery commitments

3. Compliance with Sector-Specific Regulations: Include when serving regulated industries like healthcare or finance

4. Service Credits: Include when offering financial compensation for service level failures

5. Audit Rights: Include when customer requires rights to audit provider's security or compliance

6. Insurance Requirements: Include when specific insurance coverage needs to be maintained

7. Third-Party Integration: Include when service integrates with third-party applications

8. White Labeling: Include when customer is permitted to rebrand the service

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

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

2. Service Level Agreement (SLA): Specific performance metrics, measurement methods, and remedies

3. Support Services: Detailed support procedures, response times, and escalation processes

4. Fee Schedule: Detailed pricing, payment terms, and calculation methods

5. Security Policy: Detailed security measures and compliance procedures

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

7. Acceptable Use Policy: Detailed rules and restrictions for service usage

8. Technical Requirements: Specified technical requirements for accessing and using the service

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

Relevant legal definitions
Clauses
Relevant Industries

Information Technology

E-commerce

Healthcare

Financial Services

Education

Manufacturing

Professional Services

Retail

Telecommunications

Government and Public Sector

Insurance

Real Estate

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Compliance

Information Security

Operations

Risk Management

Customer Success

Product Management

Business Development

Finance

Data Protection

Vendor Management

Relevant Roles

Chief Technology Officer

Chief Information Officer

IT Director

Procurement Manager

Legal Counsel

Compliance Officer

Software Development Manager

Cloud Solutions Architect

Information Security Manager

Operations Director

Contract Manager

Risk Manager

Data Protection Officer

Technical Account Manager

Business Development Manager

Product Manager

Service Delivery Manager

Industries
Information Technology Act, 2000: Primary legislation governing electronic transactions, digital signatures, and cybercrime in India. Crucial for SaaS agreements as it provides legal recognition to electronic contracts and establishes framework for digital transactions.
Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011: Specifies requirements for handling sensitive personal data, mandatory security practices, and privacy policies for organizations handling digital data.
Indian Contract Act, 1872: Fundamental law governing formation and enforcement of contracts in India, including essential elements like offer, acceptance, consideration, and capacity to contract.
Copyright Act, 1957: Protects software as literary work and governs intellectual property rights related to the software components of the SaaS service.
Consumer Protection Act, 2019: Relevant for B2C SaaS services, providing protection to consumers against unfair trade practices and establishing consumer rights in digital transactions.
Foreign Exchange Management Act, 1999: Applicable for cross-border SaaS transactions, governing international payment terms and foreign exchange considerations.
Goods and Services Tax (GST) Laws: Governs taxation aspects of SaaS services in India, including applicable rates and compliance requirements for digital services.
Personal Data Protection Bill (Draft): Although not yet enacted, this upcoming legislation should be considered as it will significantly impact data handling and privacy requirements for SaaS providers.
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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