Software Subscription Agreement for India

Software Subscription Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions for the subscription-based access and use of software services. This agreement outlines the rights, responsibilities, and obligations of both the software provider and the subscriber, including licensing terms, service levels, data protection requirements, and compliance with Indian IT laws. The document incorporates essential provisions required under the Information Technology Act, 2000, and related regulations, while addressing key aspects such as service availability, support, maintenance, fees, and termination rights.

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What is a Software Subscription Agreement?

The Software Subscription Agreement is designed for use in the Indian market where software-as-a-service (SaaS) and subscription-based software solutions are increasingly prevalent. This agreement is essential when a software provider offers access to their software products on a subscription basis, whether cloud-based or locally hosted. It ensures compliance with Indian regulatory requirements, including the Information Technology Act, 2000, data protection rules, and consumer protection laws. The document covers critical aspects such as subscription terms, service levels, data handling, security measures, and payment terms, while incorporating necessary provisions for intellectual property protection and liability limitations. This agreement is particularly relevant for business-to-business transactions but can be adapted for consumer applications with appropriate modifications to meet consumer protection requirements.

What sections should be included in a Software Subscription Agreement?

1. Parties: Identification of the contracting parties - software provider and subscriber

2. Background: Context of the agreement and brief description of the software service being provided

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

4. Subscription Grant: Terms of the subscription license, scope of use, and access rights

5. Service Access and Availability: Details of how the software is accessed and availability commitments

6. Fees and Payment: Subscription fees, payment terms, and billing procedures

7. Customer Obligations: Responsibilities and obligations of the subscriber, including acceptable use policies

8. Provider Obligations: Core obligations of the software provider, including service delivery and support

9. Data Protection and Security: Data handling, security measures, and privacy compliance requirements

10. Intellectual Property Rights: IP ownership, rights, and restrictions

11. Term and Termination: Duration of agreement, renewal terms, and termination provisions

12. Confidentiality: Protection and handling of confidential information

13. Warranties and Disclaimers: Software warranties, service level commitments, and limitations

14. Limitation of Liability: Liability caps and exclusions

15. Indemnification: Mutual indemnification obligations

16. Force Majeure: Provisions for unforeseen circumstances and force majeure events

17. Governing Law and Jurisdiction: Application of Indian law and jurisdiction for disputes

18. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

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

1. Service Level Agreement: Detailed service level commitments and remedies - required for enterprise or mission-critical software

2. Professional Services: Terms for additional services like implementation, training, or customization

3. Disaster Recovery: Disaster recovery and business continuity provisions - important for enterprise customers

4. Audit Rights: Rights to audit usage and compliance - relevant for enterprise licenses

5. Insurance: Insurance requirements - typically included in enterprise agreements

6. Export Control: Export control compliance - required if software is subject to export regulations

7. Third-Party Software: Terms relating to incorporated third-party software - needed if third-party components are included

8. Marketing Rights: Rights to use customer name/logo for marketing - optional promotional rights

What schedules should be included in a Software Subscription Agreement?

1. Schedule 1 - Service Description: Detailed description of the software service, features, and functionality

2. Schedule 2 - Service Level Agreement: Detailed service levels, performance metrics, and remedies

3. Schedule 3 - Support Services: Support service levels, response times, and escalation procedures

4. Schedule 4 - Fee Schedule: Detailed pricing, payment terms, and fee calculations

5. Schedule 5 - Security Requirements: Detailed security specifications and requirements

6. Schedule 6 - Data Processing Agreement: Detailed data processing terms and compliance requirements

7. Schedule 7 - Acceptable Use Policy: Detailed acceptable use terms and restrictions

8. Appendix A - Technical Requirements: Minimum technical requirements for using the software

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

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Education

Manufacturing

Professional Services

Telecommunications

Retail

Government and Public Sector

Media and Entertainment

Real Estate

Logistics and Supply Chain

Insurance

Relevant Teams

Legal

Information Technology

Procurement

Finance

Compliance

Information Security

Operations

Risk Management

Software Development

Product Management

Customer Success

Vendor Management

Contract Administration

Relevant Roles

Chief Technology Officer

IT Director

Legal Counsel

Procurement Manager

Software Development Manager

Chief Information Officer

Compliance Officer

Contract Manager

Chief Financial Officer

Operations Director

Information Security Manager

Risk Manager

Business Development Manager

Project Manager

Technical Account Manager

Industries
Information Technology Act, 2000: Primary legislation governing electronic transactions, digital signatures, and cybersecurity in India. Essential for software agreements as it provides legal recognition to electronic contracts.
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India. Defines essential elements of a valid contract including offer, acceptance, consideration, and capacity.
Consumer Protection Act, 2019: Protects consumer interests and rights, including specific provisions for e-commerce and digital products. Relevant for B2C software subscriptions.
Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011: Specifies requirements for handling personal and sensitive data, security practices, and privacy protection measures in digital transactions.
Copyright Act, 1957: Protects software as intellectual property and governs rights related to software licensing and distribution.
Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021: Provides guidelines for digital platforms and intermediaries, relevant for cloud-based software services.
Competition Act, 2002: Regulates anti-competitive practices and ensures fair competition, relevant for pricing and market behavior in software subscription services.
Foreign Exchange Management Act, 1999: Relevant for cross-border transactions and international payment processing in software subscription services.
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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