Like the above-mentioned compensation for intellectual property, the parties should compensate each other to cover the rights of a person who has used or processed his or her personal data in violation of data protection law. Often, customers do not want to grant this compensation to SaaS providers, but it is essential, because the SaaS provider is required to process the data in accordance with the customer`s instructions and if these instructions are violated. from data protection legislation, the provider must be exempt from any claim. The words have meaning and there is a big difference between whether compensation is triggered by claims „caused“ by a party`s breach versus claims „related“ or „resulting“ from that breach. Christopher is a business expert, trial lawyer and entrepreneur. He assists clients in conducting strategic analysis, contracts, business start-ups, IP and technology rights, marketing and advertising matters, and general business activities. He specializes in technology licenses and agreements as well as commercial contracts with partners, developers, suppliers and suppliers. He is a former big law partner and has worked as a general counsel for both publicly traded and publicly traded companies. The SaaS service includes the use of the SaaS provider`s hosting cloud platform, usually most SaaS providers are compatible with large hosting providers such as Amazon Web Services (AWS) or Microsoft for the hosting element of their SaaS offering. The former would impose the impractical and often impossible requirement to prove the cause of a third party`s alleged violation in order to be compensated – but the cause is usually determined only when a lawsuit on the claim takes place, which is rare, since 95+ % of all claims are dismissed or closed before a trial. The latter option reasonably presupposes that the third party can assert a relationship between his right and the determination of compensation. Most compensation agreements may be limited or procedures may be put in place to allow for greater transparency and predictability. This is most often in the case of a right to intellectual property (IP) infringement.
As a general rule, the obligation for the SaaS provider, given the requests for IP infringement, is to resolve the claim by 1) granting the necessary rights, 2) replacing the offending IP with a non-injurious IP or 3) resiliating the contract. These limitations on the amount of compensation reflect the realities that the agreement cannot remain in effect without the intellectual property and that the SaaS provider has only certain options to provide a non-hurtful service. The biggest challenge for many SaaS providers is the disclosure of breaches as a result of using the SaaS service with data from the subscriber himself and/or third-party data sources. These are things that the SaaS provider can`t control….