SaaS Agreement

What is a SaaS agreement?

A SaaS agreement, also known as a SaaS software licence agreement, is a legally binding contract between a software developer and user of such software regarding how the software shall be used, the client’s obligations, payment deadlines, privacy and intellectual property rights protection.

A SaaS licence agreement is document No.1 every business that offers cloud software to users should have.

Who should use this SaaS agreement template in Australia?

Having a solid and professionally drafted SaaS agreement template Australia can be helpful for:

• website and mobile application owners offering SaaS services to the general public;
• startups and SMEs launching SaaS accessible by Australian consumers or businesses;
• established tech leaders and businesses offering different cloud software on their online platforms;
• business owners looking for a solid SaaS services agreement template to comply with Australian consumer and privacy laws.

SaaS agreements are being used largely in conjunction with website Terms and Conditions. If cloud software collects, stores, or transfers private or sensitive data of users, in that case a privacy policy shall be used as well.

SaaS Agreement vs End-User Licence Agreement

A SaaS service agreement can sometimes be confused with another document used for licensing software to users known as an end-user licensing agreement. The key difference between those two documents is how a user or customer gets access to a software.

In the case of SaaS a client needs an Internet or mobile internet connection to access cloud services on which SaaS is based. Such an access can be given directly through a website or mobile application or via entering a user’s private account. The most famous examples of cloud SaaS products are Xero, QuillBot, Gmail, Canva, etc.

On the other hand, an end-user licensing agreement is used for SaaS products that can be downloaded to a user’s devices, such as Adobe, Windows, etc.

SaaS Agreement vs Website Terms and Conditions

It is a common misconception that SaaS agreements and terms and conditions for a website or mobile application are the same documents.

A SaaS licence agreement defines terms and conditions for how the software shall be used by a user, what should and should not be done while using such software, availability of software, technical requirements for using software, etc.

Accessing the software often requires visiting a website or mobile app a user must additionally comply with the terms and conditions of such an online platform. For example, Xero offers online software helping businesses to maintain their accounting and bookkeeping. User who subscribe to such software are bound by a respective SaaS agreement. However, when a user simply explores or learns about such software on Xero’s website, they have to follow the terms and conditions of usage of such a website.

Why choose this SaaS agreement template from FasterDraft?

By customising this SaaS agreement template with us, you get a professionally drafted legal template with the following benefits:

• a document that is suitable for any type of desktop or mobile SaaS;
• a document that provides a strong legal protection against most common IP infringement;
• a document that is fully compliant with the Copyright Act 1986, the Designs Act 2003, the Trade Marks Act 1995 and other Australian federal laws;
• a legal template that is created by real legal professionals and never by AI;
• a legal template that significantly minimises the privacy breach;
• a document that clearly defines the user’s obligations;
• a legal template available in both PDF and Word formats.

What is included in a SaaS agreement template for Australia?

A standard template for SaaS agreement includes the following key elements:

Technical Support and Interruption

This clause is common for SaaS service level agreement templates, informing users that interruptions in the work of a software can happen due to technical maintenance, security breaches, updates, amendments or other force majeure circumstances.

It is also common to offer technical support for customers and users. If this option is available, the business must share information on how a user can access such support. In some cases technical support may be available upon fulfilment of certain conditions, such as registering an account, buying a specific plan of subscription, etc.

User’s Rights and Obligations

A typical SaaS agreement should define the things a user can and cannot do with the software, as well as the policy regarding the acceptable usage of the software, for example:

• If a user can share their access to the software with third parties, such as family members;
• If a user can use a software for personal, commercial or both purposes;
• If a user shall ensure minimum technical requirements to be able to use software, etc.

There is no defined list of obligations and rights, as it largely depends on the nature of the online platform, as well as products and services offered.

Payment Terms

SaaS agreements are usually being referred to as ‘SaaS subscription agreements’ since, in 90% of all cases, they offer a subscription-based model for users. Whether it is a weekly, monthly or annual subscription, all these models imply recurring payments.

Therefore, the text of a standard SaaS agreement shall clearly outline the amount to be paid in Australian dollars and the frequency of payments, as well as how a customer can unsubscribe from such services.

Third-Party Materials and Links

If software or some of its parts include third-party materials, products, services, or links, including affiliated marketing, a SaaS agreement template must inform users of this. I such cases, a business needs to insert an additional safeguard by limiting their liability for any products or services purchased from third parties through these links or affiliate promotions.

Termination

According to Australian Consumer Law, a SaaS software licence agreement should clearly define circumstances in which the agreement shall end, as well as the effect of such termination. In particular, users should be aware of:

• How much will they be charged upon termination?
• For which period will they be charged?
• Which features of the software shall they lose access to?
• Which data is no longer accessible by users upon termination?
• Which personal data will be stored further by the business and for how long?

How to customise a SaaS agreement template with FasterDraft?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – SaaS agreement PDF or Word format.
4. Make a payment.

The Australian SaaS legal template is ready for instant download immediately after the purchase.