For software or software and service (SaaS) companies, it can be a bit confusing to know what kind of licensing contracts and legal documents you need. Here is a brief overview of the differences between three of the most well-known legal agreements. ALS is a legal agreement between the client and the service provider that defines the details of the service itself and not the relationship between the parties. This means that this type of agreement will generally cover things like the level of service, the level of quality, performance and goals on time, and what happens if there is an error or problem with the service you provide. An end-user license agreement essentially stipulates that the user can use the software if he complies with the agreement and provides the license to use it. The terms and conditions state that the user can use the service if they comply with the agreement, and here are the terms and conditions for your subscription for access to the service. Regardless of the type of license or type of licensing restrictions, the language of the license must indicate that the license remains the exclusive property of the licensee and that all intellectual property rights to the software are retained by the licensee. Microsoft uses similar language in the software license clause on the „Service Agreement“ page. Microsoft informs users that „the software is not authorized, is not sold and Microsoft reserves all rights to the software that was not expressly granted by Microsoft.“ There is another type of agreement that you need to consider with your SaaS app.
This is called the service level agreement or ALS. This is the legal contract between a client and a service provider, which regulates in detail the provisions of the service itself and not the relationships between all parties. ALS generally deals with service-related issues, z.B.: Let`s look at the pros and cons of each of these agreements for a SaaS product. 2.1 Access to services may require the customer to install certain software or software applications (an „application“ each). The customer agrees to be bound by all end-user software agreements that govern the installation and use of applications. If HyperGrid allows the customer to distribute an application to its end users („end users“), the customer can do so only after effectively linking these end-users to the end-user software agreements provided by HyperGrid in favor of HyperGrid. A Use Agreement (ToS) may also define clauses as above, but is not as detailed as an ALS. For this reason, it is possible to use both a ToS and an ALS as long as their clauses are not contradictory.