--- name: saas-license-agreement title: SaaS License Agreement description: Drafts SaaS License Agreements for cloud-based software subscriptions covering access-based licensing, fees, SLAs, IP, data protection, indemnification, and liability caps. Triggers when the user needs a SaaS agreement, software subscription contract, cloud service license, or technology subscription terms. author: CaseMark author_url: https://github.com/CaseMark/skills/tree/main/skills/legal/saas-license-agreement license: Apache-2.0 version: 0.1.0 execution_mode: open jurisdiction: general practice: commercial language: en tags: [agreement, drafting, transactional] --- # SaaS License Agreement Draft a commercially balanced SaaS License Agreement governing cloud-based software access, data custody, service performance, and subscription payment. ## Quick Start 1. Gather party names, jurisdictions, addresses (licensor + licensee) 2. Confirm deal terms: pricing model (per-user/tiered/consumption), fees, billing cycle, term length 3. Identify technical scope: platform description, modules, API access, usage limits 4. Note SLA commitments (uptime, support tiers) and data/privacy requirements (GDPR, CCPA, HIPAA) 5. Search uploaded documents for term sheets, SOWs, or prior drafts — use concrete terms over placeholders ## Core Sections ### 1. Title Block & Preamble - Title: "Software as a Service License Agreement" - Parties with full legal names, jurisdiction, addresses - Effective Date (specific or "date last signed below") - Recitals establishing access-based (not ownership) relationship ### 2. Definitions Define each term self-contained (no circular references): - **Software/Platform** — SaaS app(s), features, interfaces, updates; browser/mobile/API delivery - **Services** — access + hosting, maintenance, support, implementation, training - **Subscription Term** — Initial + Renewal Terms; distinguish from Effective Date - **Authorized Users** — employees, contractors, affiliates tied to pricing limits - **Customer Data** — all licensee-uploaded/input/generated info; remains licensee property - **Confidential Information** — both parties' non-public business/technical/financial info - **Subscription Fees** — recurring charges, distinct from one-time fees ### 3. License Grant & Restrictions **Grant:** Non-exclusive, non-transferable, non-sublicensable access right during Subscription Term for internal business purposes. Frame as access license, not sale. **Scope controls** — match to pricing model: - Per-user: max count, unique credentials, no sharing - Usage-based: metrics, allowances, overage rates - Module-based: included features, add-on process **Restrictions:** No reverse engineering; no modification outside config; no resale/rental/service bureau use; no unlawful use; API subject to specs and rate limits; affiliate access requires separate terms; all rights not granted are reserved. ### 4. Fees & Payment - Fee structure per deal (flat/per-user/tiered/consumption) - Billing cycle (monthly/annual in advance) - Payment terms: Net 30 (enterprise) or immediate (SMB) - Price adjustments: 30–90 days notice; cap annual increases if negotiated - Taxes: licensee responsible except licensor's income taxes - Late payment: 1.5%/month or max legal rate; suspension after notice + 5–7 day cure - Fees non-refundable except as expressly provided ### 5. Term & Termination - **Initial Term:** specific dates or duration from Effective Date - **Auto-renewal:** successive periods; non-renewal notice 30 days (monthly) / 60–90 days (annual) - **Termination for cause:** material breach + notice + 15–30 day cure; immediate for non-payment (post-cure), security threats, IP violations - **Suspension vs. termination:** suspension = temporary; termination = permanent - **Post-termination:** cease access; return/destroy confidential info (with certification); 30-day data retrieval window then deletion; surviving provisions (payment, confidentiality, IP, liability, indemnification, disputes) ### 6. Intellectual Property | Category | Owner | Notes | |---|---|---| | Software, updates, derivatives | Licensor | Includes features from licensee feedback | | Customer Data | Licensee | Licensor gets limited processing license | | Custom code by licensor | Licensor | Licensee gets use license within Services | | Licensee-specific configs | Negotiable | Default: licensee property | | Feedback/suggestions | Licensor | Unrestricted use, no compensation | Require preservation of proprietary notices. Licensee must report known third-party infringement. ### 7. Confidentiality & Data Protection **Confidentiality:** Same-degree-of-care standard (never less than reasonable); need-to-know only; standard exceptions (public knowledge, prior possession, independent development, compelled disclosure with notice). Survival: 3–5 years; indefinite for trade secrets. **Data protection:** Reasonable administrative/physical/technical safeguards; define controller/processor roles; address data subject rights, cross-border transfers (SCCs), breach notification (24–72 hrs). Reference DPA as exhibit if GDPR/CCPA/HIPAA applies. ### 8. Warranties & Disclaimers **Affirmative:** - Licensor: authority to license; no third-party conflicts; software performs per documentation; professional service standards - Licensee: authority to contract; rights to uploaded data; legal compliance **Disclaimers (CONSPICUOUS FORMAT):** Disclaim all implied warranties (merchantability, fitness, title, non-infringement). No guarantee of uninterrupted/error-free operation. ### 9. Limitation of Liability Draft in **CONSPICUOUS FORMAT**. 1. **Consequential exclusion:** Neither party liable for indirect, incidental, consequential, special, or punitive damages regardless of theory 2. **Aggregate cap:** Fees paid/payable in 12 months preceding claim 3. **Carve-outs:** Payment obligations (excluded); confidentiality breach (2× annual fees); indemnification (own terms); gross negligence/willful misconduct/fraud (unlimited); statutory minimums (unlimited) ### 10. Indemnification **Licensor indemnifies for:** third-party IP infringement claims from authorized use. - Remedies: (a) obtain continued-use rights; (b) modify/replace non-infringing; (c) terminate + pro-rata refund - Exclusions: unauthorized modifications/combinations; non-compliant use; continued use after fix provided **Licensee indemnifies for:** Customer Data claims (IP, privacy, unlawful content); use violating agreement/law; compromised credentials. **Procedure (both):** Prompt written notice; reasonable cooperation; indemnitor controls defense/settlement (no fault admission without consent). ### 11. Service Levels & Support (if applicable) **Uptime SLA:** | Availability | Credit | |---|---| | 99.0–99.5% | 5% monthly fees | | 98.0–99.0% | 10% monthly fees | | Below 98.0% | 25% monthly fees | - Measure monthly; exclude scheduled maintenance (24–48 hrs notice), force majeure, ISP/DDoS, licensee issues - Credits: request within 30 days; applied to future invoices; sole remedy - Persistent failure (3+ consecutive months below target) may be material breach **Support tiers:** Sev 1 Critical (1 hr) → Sev 2 High (4 business hrs) → Sev 3 Medium (1 business day) → Sev 4 Low (2 business days). Excludes custom development, on-site assistance, third-party integrations. ### 12. Compliance & Audit - Licensee complies with applicable laws (export controls, data protection, anti-corruption) - Audit: max 1×/year; 10–15 business days notice; primarily via system logs - Non-compliance: retroactive payment at current rates; overage >5% → licensee reimburses audit costs ### 13. Governing Law & Disputes - Governing law: licensor's home state; exclude conflict-of-law and CISG - Choose litigation (exclusive jurisdiction) OR arbitration (AAA/JAMS, single arbitrator, binding) - Pre-dispute: 30-day good-faith executive negotiation - Equitable relief available for IP/trade secret/confidentiality without waiving arbitration ### 14. General Provisions | Provision | Terms | |---|---| | Assignment | Consent required (not unreasonably withheld); M&A exception; unauthorized = void | | Amendments | Written, signed by both | | Severability | Court modifies to minimum extent; sever if not possible | | Notices | Email (delivery confirmed), courier, or certified mail | | Entire agreement | Supersedes prior understandings; establish exhibit precedence | | Relationship | Independent contractors | | Force majeure | Excuses performance; terminate if persists 30–60 days | | Counterparts | Electronic signatures valid | ### 15. Signature Blocks & Exhibits Signature blocks (name, title, date) for each party. Attach labeled exhibits with order of precedence: SLA, Pricing Schedule, DPA, Acceptable Use Policy. ## Pitfalls & Checks - Frame as **access-based license** throughout — never imply sale or ownership transfer - Disclaimers and liability caps must use **CONSPICUOUS FORMAT** (bold/caps) for enforceability - Adapt data protection to the specific regime (GDPR/CCPA/HIPAA) — avoid generic language - Mark uncertain legal citations with [VERIFY] - Maintain defined-term consistency: capitalize throughout; verify every defined term is used and vice versa - US-focused template — flag jurisdiction-specific enforceability concerns - Use plain language; avoid archaic legalese ("witnesseth," "hereinafter")