SOFTWARE AGREEMENTS AND SAAS AGREEMENTS TEXAS

Software license agreements, development agreements and distribution agreements are drafted and negotiated by experienced software attorneys.

DRAFTING SOFTWARE AGREEMENTS

What Are Software Development Agreements?


Software Development Agreements (SDA) are extremely important to create prior to developing any software. These software agreements, at a minimum, need to be clear on the scope of the software to be developed, the ownership of the developed code, and any software rights reserved by the developer.  A well drafted software development agreement not only helps minimize misunderstandings of the parties involved but it also avoids costly and unnecessary litigation disputes.    Our software attorneys have experience in programming software and, having such experience, are uniquely qualified to draft, develop and negotiate software development contracts that clearly identify the software being created and the rights being protected.


Negotiating A Software Development Agreement


It is important to draft and negotiate a software development agreement before commencing any development work.  Software development agreements ensure the following:

 

  • The orderly transfer of copyright in and to the software from the developer to the company (i.e. the “work made for hire” doctrine);

 

  • Procedures for resolving disputes, such as arbitration or mediation; and

 

  • Any other specific software rights and/or reservations necessary between the parties (i.e. use of background-technology or pre-developed code, which may want to be owned by the developer but licensed to the company). 

 

Other important areas to be negotiated in a software development agreement include a detailed statement of work for the software deliverable, the timeline for software deliverable, the amount to be paid for all deliverables (including milestone payments), and any performance warranties or warranties for a particular purpose to ensure the software is developed per the statement of work. Whether you are a software development company, or a company who is outsourcing the software development work, our attorneys can protect your rights in and to your software development.


What Is A Software As A Service (SaaS) Agreement? 


A SaaS agreement is an agreement between a service provider and a customer that sets out the provision and delivery of software services to those customers through the internet. Most SaaS software is licensed on a subscription basis and hosted through a portal which is accessible through the internet. The customer never received software but rather receives an access right to use the software through that portal or "cloud".  In the event the SaaS allows the customer to access documents or download materials, then a licensed right to use such documents and downloads will be included in the SaaS Agreement.  Generally, a customer will never receive or install software relating to the SaaS product. 



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Additional Software Agreement Focus 

When Is A Hand-Shake Not Good Enough?


While it is generally never a good practice for a company or person to rely on a handshake or a written message to procure or develop software from a third party, ultimately disputes arising from misunderstanding can be avoided if a software development agreement is executed very early in the process. Once the developer generates source code, it is important that the software owner and software developer clarify and memorialize who will own the software, who may use the software, and what rights of the developer and the software owner are to be retained. If the software developer may not reuse or sell the software, then the software license agreement needs to be very clear as to source code reuse and resell. Whether you are a company hiring a programmer, or the programmer working with a company, our software attorneys can help you create a software development agreement that meets and exceeds your needs.


What To Include In A Software As A Service (SaaS) Agreement? 


A SaaS agreement is an agreement between a service provider and a customer that sets out the provision and delivery of software services through cloud hosting accessible through the internet. SaaS agreements differ from standard software licensing agreements because they do not involve the installation or download of software. It is reasonable for customers to expect that any SaaS application will work at least to the same degree as any locally installed software would work on a customer's personal computers; therefore, SaaS service providers must offer up-time service level commitments designed to support a customer. This support reassures the customer that his or her business won't be significantly impaired by using hosted software. An SaaS service only works if a customer can consistently rely on it. Customary items to be considered in a SaaS Agreement, include the following:

 

  • SaaS customarily hosted in the cloud by SaaS Provider; 

 

  • No license grant to software, only right of access to use service;

 

  • Some licenses for downloaded documents or downloaded materials; 

 

  • Subscription based service for a period monthly or yearly fee;

 

  • Service level commitment for service up-time; 

 

  • Data customarily hosted by SaaS Provider within service and not by customer; and

 

  • IP owned by the SaaS Provider, however customer owns their data.

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A person is holding a cell phone in front of a book titled artificial intelligence
By John Wilson February 19, 2025
Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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