The Tech Contracts Issue-Spotter

I use the table of contents from The Tech Contracts Handbook as an issue-spotter for software licenses, cloud computing agreements, and other IT contracts. I’m posting the table so others can do the same. Simply peruse the topics listed below and ask yourself whether your contract needs a clause addressing each one.

Introductory Material:
[deleted] xi – xvi
Three Lessons about Contracting xviii
1. Good Fences Make Good Neighbors xviii
2. There Is No Such Thing as “Legalese” or “Technicalese” xix
3. Ask Yourself “What’s Our Best Option?” Not “What’s Fair?” xx

PART I. PRIME CLAUSES 1
A. Standard End User Software License 3
1. Reproduction and Use 4
2. End User Restrictions 6
B. Standard Distributor Software License 8
1. Distribution 9
2. Distributor Restrictions 11
3. Minimum Obligations to Distribute 13
C. Software Licenses in General 15
1. Copyright License Rights 16
2. Scope Terms 21
3. Unrestricted License 26
D. Technology Ownership: Assignment and Work-for-Hire 28
1. Ownership of Work Product 31
2. Transfer of Existing Assets 39
3. Transfers from the Vendor’s Employees and Contractors 42
E. Subscription for Cloud Services 44
1. Cloud Services Subscriptions 44
2. Cloud Resale 46
F. Promise of Professional Services 48
1. Defining the Professional Service 49
2. Statements of Work 50
3. Change Orders 53
G. Payment 55
1. Customers’ Fees 55
2. Distributors’ and Resellers’ Fees 57
3. Due Dates and Invoices 59

PART II. GENERAL CLAUSES 61
A. Technical Specifications 63
1. The Importance of Specifications 64
2. Responsibility for Specifications 65
3. Organizing and Editing Specifications 65
4. Specifications as a Moving Target 67
B. Service Level Agreements 69
1. Response, Repair, and Remedy 70
2. The Material Breach Issue 72
3. SLA Modification 72
C. Maintenance, Including Updates and Upgrades 75
D. Documentation 80
E. Schedule and Milestones 82
F. Delivery, Acceptance, and Rejection 86
G. Nondisclosure/Confidentiality  90
1. What’s Confidential? 91
2. Restrictions on Use 93
3. Injunction, Termination, and Retention of Rights 94
H. Data Management and Security 97
1. Customer Data Defined 98
2. Data Management and E-Discovery 99
3. Data Security 105
4. Data Clauses vs. Nondisclosure Clauses and NDAs 110
I. Warranty 112
1. Warranty of Function 113
2. Intellectual Property/Ownership Warranty 115
3. Professional Services Warranty and Related Promises 118
4. Other Warranties 119
5. Disclaimers of Warranties 120
6. Remedies for Breach of Warranty and Similar Failures 124
J. Indemnity 128
1. Indemnity in General 129
2. Indemnities from the Vendor 132
3. Exclusions from IP Indemnity 134
4. Indemnities from the Customer, Distributor, or Reseller 137
5. Mutual Indemnities 141
K. Limitation of Liability 146
1. Dollar Cap 147
2. Exclusion of Consequential Damages 148
3. Unconscionability and Required Clarifications 149
4. Exceptions: Liability That’s Not Limited 151
L. Use of Trademarks 154
M. Training 157
N. Feedback Rights 159
O. Non-Compete and Employee Non-Solicit 163
1. Non-Compete 164
2. Employee Non-Solicit 167
P. Software Audits 169
Q. Liquidated Damages 172
R. Disaster Recovery 175
S. Technology Escrow 178
1. Deposit and Verification 179
2. License and Confidentiality 181
3. Release and Other Issues 183
4. Cloud Services Escrow and Pseudo-Escrow 184
T. Financial Stability 187
1. Financial Reporting 187
2. Insurance 188
U. Alternate Dispute Resolution 191
V. Term and Termination 196
1. Term 196
2. Termination for Cause 198
3. Termination for Convenience 199
4. Effects of Termination 200
W. Everything Else 203

PART III. BOILERPLATE CLAUSES 205
A. Introduction and Recitals 207
B. Definitions 209
C. Time Is of the Essence 210
D. Independent Contractors 211
E. Choice of Law and Courts 212
F. Notices 214
G. Government Restricted Rights 215
H. Technology Export 217
I. Assignment 219
J. Force Majeure 221
K. Severability 223
L. No Waiver 224
M. Bankruptcy Rights 225
N. Conflicts among Attachments 227
O. Execution in Counterparts 230
P. Construction 231
Q. Internet-Related Boilerplate 232
R. Entire Agreement 233
S. Amendment 234

APPENDICES
1. Intellectual Property 243
2. Open Source Software Licenses 247
– Copyleft Licenses 249
– Permissive (Less Restrictive) Open Source Licenses 251
– Other Terms of Open Source Licenses 252
3. Clickwraps, Browsewraps, and Other Contracts Executed without Ink 254
4. Online Policy Documents 257
– Acceptable Use Policies 257
– DMCA/Copyright Notice Policies 261
– Privacy Policies 266

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© 2016 by David W. Tollen. All rights reserved.

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