The Tech Contracts Handbook, 2nd Edition

The Tech Contracts Handbook: Cloud Computing Agreements, Software Licenses, and Other IT Contracts for Lawyers and Businesspeople

The Tech Contracts Handbook is a practical, user-friendly reference manual and training guide on cloud computing agreements, software licenses, and other IT contracts. It’s a clause-by-clause “how to” resource, covering the issues at stake and offering negotiation tips and sample contract language.

The Handbook is for both lawyers and businesspeople — including contract managers, procurement officers, in-house and outside counsel, salespeople, and anyone else responsible for getting IT deals done. Perhaps, most important, it uses clear, simple English, like a good contract.

Topics covered include:

• Software-as-a-service (SaaS) subscriptions
• Warranties and service level agreements (SLA’s)
• Data security and privacy
• Indemnities
• Disaster recovery (DR)
• Non-competes
• Limitations of liability
• Clickwraps
• Open source software
• Nondisclosure agreements (NDA’s) and confidentiality
• Technology escrow
• Copyright and other intellectual property (IP) licensing
• Internet and e-commerce contracts
• And much more …

Table of Contents

PART I. Prime Clauses
A.Standard End User Software License
1.Reproduction and Use
2.End User Restrictions
B.Standard Distributor Software License
1.Distribution
2.Distributor Restrictions
3.Minimum Obligations to Distribute
C.Software Licenses in General
1.Copyright License Rights
2.Scope Terms
3.Unrestricted License
D.Technology Ownership: Assignment and Work-for-Hire
1.Ownership of Work Product
2.Transfer of Existing Assets
3. Transfers from the Vendor’s Employees and Contractors
E.Subscription for Cloud Services
1.Cloud Services Subscriptions
2.Cloud Resale
F.Promise of Professional Services
1.Defining the Professional Service
2.Statements of Work
3.Change Orders
G.Payment
1.Customers’ Fees
2.Distributors’ and Resellers’ Fees
3.Due Dates and Invoices

PART II. General Clauses
A.Technical Specifications
1.The Importance of Specifications
2.Responsibility for Specifications
3.Organizing and Editing Specifications
4.Specifications as a Moving Target
B.Service Level Agreements
1.Response, Repair, and Remedy
2.The Material Breach Issue
3.SLA Modification
C.Maintenance, Including Updates and Upgrades
D.Documentation
E.Schedule and Milestones
F.Delivery, Acceptance, and Rejection
G.Nondisclosure/Confidentiality
1.What’s Confidential?
2.Restrictions on Use
3.Injunction, Termination, and Retention of Rights
H.Data Management and Security
1.Customer Data Defined
2.Data Management and E-Discovery
3.Data Security
4.Data Clauses vs. Nondisclosure Clauses and NDAs
I.Warranty
1.Warranty of Function
2.Intellectual Property/Ownership Warranty
3.Professional Services Warranty and Related Promises
4.Other Warranties
5.Disclaimers of Warranties
6.Remedies for Breach of Warranty and Similar Failures
J.Indemnity
1.Indemnity in General
2.Indemnities from the Vendor
3.Exclusions from IP Indemnity
4.Indemnities from the Customer, Distributor, or Reseller
5.Mutual Indemnities
K.Limitation of Liability
1.Dollar Cap
2.Exclusion of Consequential Damages
3.Unconscionability and Required Clarifications
4.Exceptions: Liability That’s Not Limited
L.Use of Trademarks
M.Training
N.Feedback Rights
O.Non-Compete and Employee Non-Solicit
1.Non-Compete
2.Employee Non-Solicit
P.Software Audits
Q.Liquidated Damages
R.Disaster Recovery
S.Technology Escrow
1.Deposit and Verification
2.License and Confidentiality
3.Release and Other Issues
4.Cloud Services Escrow and Pseudo-Escrow
T.Financial Stability
1.Financial Reporting
2.Insurance
U.Alternate Dispute Resolution
V.Term and Termination
1.Term
2.Termination for Cause
3.Termination for Convenience
4.Effects of Termination
W.Everything Else

PART III. Boilerplate Clauses
A.Introduction and Recitals
B.Definitions
C.Time Is of the Essence
D.Independent Contractors
E.Choice of Law and Courts
F.Notices
G.Government Restricted Rights
H.Technology Export
I.Assignment
J.Force Majeure
K.Severability
L.No Waiver
M.Bankruptcy Rights
N.Conflicts among Attachments
O.Execution in Counterparts
P.Construction
Q.Internet-Related Boilerplate
R.Entire Agreement
S.Amendment

APPENDICES
1.Intellectual Property
2.Open Source Software Licenses
Copyleft Licenses
Permissive (Less Restrictive) Open Source Licenses
Other Terms of Open Source Licenses
3.Clickwraps, Browsewraps, and Other Contracts Executed without Ink
4.Online Policy Documents