Authored by Barbara Murphy Melby, Christopher C. Archer, and Jay Preston
In Part 1 of this Contract Corner on Software as a Service (SaaS) agreements, we discussed ownership and use issues in SaaS transactions where the application is provided and hosted as a dedicated instance with common base software (sometimes with customization or variation) but running as a separate instance in a dedicated environment.
In this Part 2, we will look at ownership and use issues in transactions where the application is provided and hosted in a multitenant environment, with one common application layer and hosting environment that is logically partitioned by customer.
As noted in Part 1, when thinking about ownership and other intellectual rights in SaaS deals, we generally consider the following categories, discussed in more detail below. As with any solution there can be variations and customer-specific needs that drive different requirements.