SaaS Tips by Sapna | Tip No. 10 – EULAs

If your SaaS includes a downloadable component such as a mobile app, or allows your customer’s end-users to log in and use the service, include an end-user license agreement (EULA) along with the SaaS agreement.

The EULA sets out the rights and obligations of the end-user (i.e., the person who actually logs into and uses the SaaS) with respect to the service. This is separate from the SaaS agreement. The SaaS agreement must, however, make the customer responsible for ensuring the end-users comply with the EULA.

For example, let’s say you are purchasing a SaaS application for your employees to process their expenses and the SaaS application includes a downloadable app that can be used on smartphones. The app will likely have a EULA that your employee must agree to use the app.

When negotiating a SaaS agreement, it is essential to review the EULA. You need to make sure that:

  • the terms of the EULA are restricted to the app or the downloaded software (and don’t cover the entire SaaS system)
  • the EULA does not impose onerous conditions or restrictions on the end-user (who are your employees, in the example above)
  • the EULA does not contradict or negate any of the terms of the SaaS agreement

To learn more and join in the discussion, check out my LinkedIn post.

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