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Legal advice / Cloud & Software as a Service (SaaS)

Cloud computing, Software as a Service (SaaS), Software on Demand, or Application Service Provider (ASP) services. While it is not yet clear what this model will actually be called, everyone agrees that it has become part of everyday life.

Cloud computing (the term we’ve chosen to use) is about making software services and data available on request. This has certain advantages, but poses (legal) risks as well. If a provider discontinues its services, can users continue to use their data? Does the data actually belong to the user? May the data be stored in the USA? And what compensation can be claimed if the service is unavailable for a certain period of time?

Therefore, it is important to clearly define your position as a cloud-computing service provider (or as a purchaser of these services). The following points require extra attention:

  • The SaaS agreement. In addition to a right of use, the availability of the software service (uptime and reliability), maintenance and the payment terms should be clearly set out in this agreement.
  • Backups, access to and the ownership of data. What is a client permitted to do with the data stored “in the cloud”? How can the data be exported?
  • Privacy and personal data. If cloud services are used for privacy-sensitive data, a privacy statement and a processor’s agreement are legal requirements. If data is stored on US-servers, the EU-U.S. Privacy Shield is applicable as well. This imposes some additional obligations on both parties.
  • Continuity. What happens if the service provider goes bankrupt or access is blocked due to non-payment of the client?
  • Cloud migration. Who keeps control and responsibility over hardware, management, data protection and privacy?

FOR MORE INFORMATION, PLEASE TAKE A LOOK AT OUR FACTSHEET ‘CONTINUITY IN THE CLOUD

WOULD YOU LIKE MORE INFORMATION? 

Send an e-mail to: info@legalict.com or call us at: +32 (0)2 535 77 55. You can also use the form below: one of our legal advisors will get back to you very soon.

 

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