| For Application Service Providers – anyone | | | | include delivery time of the service or |
| who provides clients access to licensed software | | | | performance. It clearly defines and documents the |
| and application services – implementing a | | | | common understanding of services, responsibilities |
| system of checks and balances, risk management | | | | and guarantees, while typically covering issues |
| procedures and quality control is invaluable. | | | | such as serviceability, performance and operation, |
| Typically a solid Application Service Provider (ASP) | | | | just to name a few. |
| Agreement will fulfill these needs. | | | | Service providers can purchase packages that |
| An Application Service Provider Agreement | | | | include a variety of templates, including a |
| manages the relationship between an ASP and the | | | | software license template. Software license |
| licensed user. In other words, it sets limits and | | | | Agreements set the terms and conditions for the |
| expectations on the use of your software and | | | | end users of your software and includes |
| applications server. It also controls who has | | | | disclaimers, limitations of liability, and confidentiality |
| access to the software or servers as well as | | | | agreements, among other safeguards. |
| where and when they can be accessed. | | | | When searching for packages, most companies |
| An ASP Agreement will also prevent modification | | | | will provide ASP Agreement samples for viewing. |
| or reverse engineering of the software and | | | | Be sure the software license template and the |
| determine server storage space available for each | | | | ASP Agreement sample includes the following |
| client, which limits exposure to infringement on | | | | sections: |
| intellectual property rights and confidentiality. Most | | | | * Grant of License |
| importantly, these agreements reduce the | | | | * Use and Access |
| ASP’s liability for deficiencies and defects in | | | | * Price and Payment |
| the software or on the server. | | | | * Technical Support |
| ASP Agreements are not only necessary for | | | | * Terms and Termination |
| large-volume ASPs; they also cover service | | | | * Ownership of Intellectual Property |
| providers who offer single applications to their | | | | * Confidentiality |
| clients. ASP businesses that would benefit from | | | | * Warranty and Disclaimer |
| the agreements include: | | | | * Limitation of Liability, Indemnification |
| * Specialist or functional ASP – provides a | | | | * Relations of Parties |
| single application, such as credit card payment | | | | * Non-assignment |
| processing or timesheet services | | | | * Arbitration |
| * Vertical market ASP – provides a solution | | | | * Attorney’s Fees |
| package for a specific customer, such as a | | | | * Severability |
| doctor’s office | | | | * Force Majeure |
| * Enterprise ASP – offers a wide variety of | | | | * Waiver and Modification |
| solutions | | | | * Entire Agreement |
| * Local ASP – offers small-business services in | | | | ASP agreements will safeguard your company |
| a particular area | | | | from any future claims of damages, and reduce |
| * Volume ASP – delivers cost effective | | | | your exposure and liabilities. Many companies have |
| package solutions through its own Web site | | | | made it easy to implement the agreements by |
| An important component of an ASP is the | | | | providing packages specifically designed for the |
| Service Level Agreement (SLA). This formally | | | | service providers needs. Be sure to preview the |
| negotiated agreement between two parties is | | | | ASP Agreement samples to ensure it covers the |
| part of the service contract in which the level of | | | | needs of your business. |
| service is formally defined. This agreement might | | | | |