The IT package includes the three most basic yet crucial document templates that enable companies to immediately organize their relationships and workflows with their clients/contractors in software development and maintenance. This package will safeguard your IT operations and provide your clients with transparent business dealings.
The IT package is particularly recommended for companies engaged in IT development or those needing IT services and support.
In the Package You Will Receive:
- Software Development Agreement: This is a straightforward document that ensures quality software development and establishes your rights to the software.
- Software Maintenance Agreement: This document maintains seamless operation and customer relationships in the use of software.
Simple SAAS Agreement: This manages the business relationship in the use of your IT solutions.
What You Absolutely Need Before Starting Any IT Project?
Do you need software for the commercialization of your technology or service but lack the expertise to develop it yourself? Have you hired a software developer but are unclear about who now owns the source code? Perhaps you’ve implemented software only to find it stops working after a few months due to operational disruptions and errors made by the contractor, yet the contractor does not compensate for the damage or assist in fixing the errors? Are you a software developer who participated in a particular project but are unsure if you can use the source code for other projects?
Given these questions, it is not surprising that legal disputes in the information technology and software industry are extremely common. Whether you are a software client or a developer, a software development agreement is essential for smooth and successful collaboration. A well-written contract sets expectations at the outset, reduces the likelihood of costly legal disputes, and addresses potential issues before they arise.
INNO Legal Ltd. is a leading company specializing in intellectual property law in the field of information technology and software both in Slovenia and Europe.
We offer you:
- Contracts for software development and participation in the entire negotiation process
- Software maintenance contracts
- Software licensing agreements
- Application protection
- Consulting on software-related projects and legal questions
What is a Software Development Agreement?
A software development agreement is a service contract between a company (hereinafter referred to as the client) and a software developer (hereinafter referred to as the contractor), under which the software developer agrees to create software. This agreement allows the parties to specify the type, scope, and value of the work that the contractor is obligated to perform as part of the software development for the client.
The software development agreement outlines the project’s scope and costs, intellectual property rights, confidentiality, success metrics, timelines, and guarantees for the proper functioning of the software. Because software development is a dynamic process, software development agreements try to capture the flexible nature of software development and the needs, desires, and interests of both clients and contractors. However, this flexibility can lead to insufficient protection for both parties and less certainty regarding key issues such as maintenance, issues, and ownership of source code, protection of trade secrets and sensitive information, etc. Therefore, careful monitoring and advice from a specialized legal service are necessary for a smooth and high-quality software development project.
Infringement of intellectual property rights is the most common subject of legal dispute in the software development process. Software development is typically considered “work for hire,” so it is crucial that the software development agreement includes the transfer of intellectual property rights from the contractor to the client. Rights can be transferred in full or licensed.
Contractors in the software development process often include work or materials they designed before starting the project collaboration. This way, they and the client save time and money. It is extremely important that the client understands what such work means for the final product or service and what the risks are. Due to the complex and dynamic nature of the software industry, there is a high likelihood that the contractor you are working with collaborates with third parties, uses their copyrights and patents, or misuses them knowingly or unknowingly. In such cases, your collaboration with the contractor may automatically involve the work and intellectual property rights of third parties, for which you must obtain appropriate licenses otherwise you may be liable for violations. At INNO Legal Ltd., we check whether the contractor has appropriate authorship contracts, employment contracts, and does not violate existing patents. In this way, we protect you from unpleasant consequences that can abruptly interrupt the entire project or endanger your final product or service.
Case law at home and abroad shows that ownership of the source code is one of the more frequent subjects of legal dispute, as many clients mistakenly believe that by purchasing software, they acquire ownership of the source code, or because the need for rapid software development simply overlooks negotiation in this area.
If you are a software client and have not acquired ownership of the source code, you are:
- Entirely dependent on the software contractor and their knowledge and access to the source code in case of software failure. You cannot employ another contractor for maintenance and upgrading.
- Allowing the software contractor, as the copyright holder, free rein to use the same source code for other projects, including your competitors.
- Unable to develop and improve equipment, secure investment funds, or sell your product.
The original code is usually protected by copyright, meaning that the developer of the software is primarily the owner of the original code. If your employee develops the software, it is appropriate to additionally secure ownership of the source code in an employment contract.
If you are a software developer, there is a great likelihood that you have transferred your competitive advantage in the form of software and source code to the client and lost it at too low a price.
TIME & QUALITY
At the heart of every business and collaboration are QUALITY, TIME, and TRUST.
A well-constructed software development agreement allows just that; to obtain quality software within the agreed time frame, thus protecting you from losses and legal disputes.
A significant challenge for contractors is indeed delays in software implementation and payment delays that occur due to new desires, goals, and instructions from the client. Legal disputes lead to disagreements over the quality of final project results, inadequate criteria for assessing final results, and a lack of testing procedures. At INNO Legal Ltd., in collaboration with both parties, we help in preparing specifications that clearly describe the work, the level of quality, and the time that must be completed under the contract.
No more promises and unrealistic expectations about the final result.
The challenge is even greater when the project contractor does not carry out the work themselves but employs subcontractors. In this case, an IT contract can be prepared that includes multiple providers and contractors responsible for individual parts of the project.
Quality also includes the long-term effective operation of the software.
Imagine that a bug occurs in the software of your product, concerned users turn to your company, but you lack the knowledge and resources for proper diagnostics and repair of the error. You turn to your software contractor, who is very busy in other projects and avoids carrying out the necessary repairs. This worst-case scenario leads to severe financial losses, and as a client, you are left to fend for yourself. Maintaining software is a critical part of the software development cycle. Even the greatest efforts to release software that would operate without errors cannot guarantee smooth operation of the software in the future. Collaboration with software contractors is expensive and time-consuming, so as a client, you primarily want someone who guarantees that they will provide appropriate assistance in maintaining, repairing, and updating the software.
Because we understand how important it is that clients do not lose necessary time and energy in prolonged negotiations, at INNO Legal Ltd., we swear by our experience, which allows us to work quickly, quality, and effectively.
TRUST
The process of business collaboration involves a certain degree of disclosure. Just explaining your needs and interests in the negotiation process requires careful explanation and convincing the other side to agree to and accommodate them. In the process of software development, it is often necessary to disclose important and sensitive information, knowledge, and trade secrets for the project to run smoothly, and it is possible that business secrets and confidential information may be created in the process of your collaboration that need protection. Needs and concerns regarding confidentiality can vary greatly from company to company and from situation to situation. It is extremely important that you succeed in identifying such information and formulate necessary agreements that protect them.
Projects involving the development and implementation of software are time-consuming, often expensive, and complex. For good mutual collaboration, it is extremely important that both the client and the contractor actively participate in the negotiation process under professional legal assistance. Software development agreements must be prepared precisely, thoughtfully, and in a way that protects the interests of both parties. With three pillars of good business satisfied, i.e., SPEED, QUALITY, and TRUST, we guarantee that you are on the right track for long-term collaboration with your new software contractor.
