SaaS Regulation and Legal ComplianceSaaS Regulation

Non-Court Dispute Resolution

In Pakistan, IT companies such as Cloud Computing, Fintech and Web Applications or SaaS registration and their legal compliance are the main factors in consideration by the Government.
Presently, guidelines are weak as there are no other professional legal services providers in Pakistan which bring the facts into the notice of the tech companies.

Introduction

ON OUR SIDE

Irrespective of whether you are establishing or running SaaS or Web
Applications, you must focus on the following legal works,
1. Service Level Agreement – SLA
2. Services Subscription Agreement
3. End-User License Agreement
4. Terms & Conditions, Privacy Policy, Cookie Policy and
Disclaimer
5. Software Licensing Agreements
6. Software Integration and Implementation Agreements
7. Software Customisation Agreements
8. Software Support and Maintenance Agreements
9. Vendor and Client contracts
10. API agreements with third-parties
11. Data Protection and Privacy law compliance
12.Payment Gateways related issues and contracts
13.Compliance with consumer and competition law
14.Compliance with other governing laws and regulations
15.Brand and Service Protection through IP

Define your Trade Secrets

PROTECTING YOUR FINANCES

Define what the trade secrets of your business are and ensure such secrets
in the employment contracts. You do not need to explain or mention your
trade secrets on the public documents such as Memorandum of Association
or Article of Association as they are public documents.

Transfer Your Intellectual Property

If you are planning to take venture funding your investor will want the
company to own the intellectual property rather than you personally own
the IP.
So make sure that your company owns the IP.

Non-Disclosure Agreements

If you are hiring employees, contractors or engaging third parties you must

Have an Up To Date Privacy Policy
Data privacy is more important than ever so it is most important for the
companies to strictly follow the data privacy regulations of different regions
and countries.
Data privacy policy must contain the following;
● Which information is collected?
Information provided by the consumer himself
Information collected automatically

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Complete Details

Introduction:

Irrespective of whether you are establishing or running SaaS or Web
Applications, you must focus on the following legal works,
1. Service Level Agreement – SLA
2. Services Subscription Agreement
3. End-User License Agreement
4. Terms & Conditions, Privacy Policy, Cookie Policy and
Disclaimer
5. Software Licensing Agreements
6. Software Integration and Implementation Agreements
7. Software Customisation Agreements
8. Software Support and Maintenance Agreements
9. Vendor and Client contracts
10. API agreements with third-parties
11. Data Protection and Privacy law compliance
12.Payment Gateways related issues and contracts
13.Compliance with consumer and competition law
14.Compliance with other governing laws and regulations
15.Brand and Service Protection through IP
16.Marketing and Client acquisition agreements

Have Agreements for Incorporation

You ensure that you have made compliance with the SECP rules and
regulation and possess all the documents/agreements

Have an up-to-date Cap table

A cap table is a capitalization table on a spreadsheet providing an analysis
of a company’s interest such as all of a company’s equity ownership capital,
investment by the owner and shareholders (if any), common equity shares,
preferred equity shares, warrants, and convertible equity.

Register your copyright, trademark and patents

Must register your services tools, source code and other company’s
products with the IPO.

Define your Trade Secrets

Define what the trade secrets of your business are and ensure such secrets
in the employment contracts. You do not need to explain or mention your
trade secrets on the public documents such as Memorandum of Association
or Article of Association as they are public documents.

Transfer Your Intellectual Property

If you are planning to take venture funding your investor will want the
company to own the intellectual property rather than you personally own
the IP.
So make sure that your company owns the IP.

Non-Disclosure Agreements

If you are hiring employees, contractors or engaging third parties you must
sign a Non-Disclosure Agreement in order to protect your confidential
information.

Have an up-to-date Terms of Use

Basically Terms of Use is an essentially software licensing agreement of
your SaaS products with your consumers. So the Terms of Use should have
clear information about;
● Licensing of your SaaS to the customer
● Restriction of use of your product
● Limitation of Liability & Claims
● Disclaimer of warranties
● Intellectual Property and Copyrights
● What law governs the contract
● Notice of changes in Terms of Use
● Business contact information
● What happens if your user violates terms
● How the consumer can end this contract
● Penalties

Have an Up To Date Privacy Policy

Data privacy is more important than ever so it is most important for the
companies to strictly follow the data privacy regulations of different regions
and countries.
Data privacy policy must contain the following;
● Which information is collected?
Information provided by the consumer himself
Information collected automatically
● How is information collected?
Through forms
Through automated procedures
● How is the data secured and where it is located?
● Use of the data
● Disclosure or Sharing of Information
● Accessing and Correcting Information
● Deletion of information on request of user
● Age Consent
● Limitation of liability
● Changes to Privacy Policy
● Contact Information
NOTE: SaaS providers must obtain the explicit and unambiguous consent
of the user regarding his data

Have an up to date Cookie Policy

The cookie policy deals specifically with the use of cookies on your site,
whereas the privacy policy is a general document regarding all of the data
processes on a website, including contact forms, mailing lists, etc.
If the SaaS is using cookie methodology to collect information then the
SaaS must have a cookie policy listed on the website or app.
A cookie is a small text file which includes a unique identifier that is sent by
a web server to your computer, mobile phone or any other internet enabled
device, when a user visits the SaaS website or App. Cookies are widely used
to make sites work efficiently and to collect information about user’s online
preferences.
Cookie Policy must contain the following;
● What are Cookies?
● How do we use cookies and tags etc?
● Categories of Cookies
○ Essential cookies
○ Functionality cookies
○ Performance cookies
○ Targeting cookies
● How Do I reject cookies?
● Changes to this cookie policy

Have a Service Level Agreement

Service Level Agreement SLA is the promise of the services you are making
to your customer regarding the quality, availability and responsibilities of
the company.
Some of the information an SLA should include;
● The service you are providing
● Promised uptime and downtime
● How to report issues or submit support questions
● Response and issue resolution time frame
● What happens if company doesn’t meet your commitments

Take Data Privacy Compliance

Your SaaS product should follow the standards (more appropriate if
following related to ISOs) in order to protect the user’s data which includes
encryption, backups, logging, high availability, disaster recovery etc.
Build data privacy compliance into your product, and meeting the
requirements set by upcoming regulations are going to be a breeze.

Audit your Vendors for Data Privacy

If your SaaS is getting the services of vendors or cloud computing (like
AWS, Google Cloud, GSuite or MS Azure etc.) to run your SaaS which
includes your vendors in your chain of liability.
This means that if they have a breach, you have a breach. Make sure you are
auditing your vendors for data privacy practices and standards.

Have Internal Policies and Procedures

Your company must have appropriate internal policies and procedures that
ensure your company runs smoothly. These policies include:
● Employment Policies – according to employment laws of Pakistan.
● Data Privacy and Security compliance
● Telecommunication laws
● Disaster Recovery
● Business Continuity

Hire an officer who will enforce Policies and Procedures

Hiring an in-house Human Resources professional or a Chief Security
Officer who will enforce the policies and procedures of the company and
will protect unnecessary and unnoticed mistakes.

Practice Corporate Governance

Corporate Governance is making sure you are following the rules of the
company. This includes hiring decisions, fundraising, and others.

Update your Agreements and Policies

A company must have a counsel on board who will update the agreements
and policies on a regular basis. This helps you keep up with new
regulations, protect updates to your product, and generally legally stay on
top of protections available to you.

Have Insurance (Optional)

There are several different types of insurance policies available to your
business. Business insurance, just like car, home, renters, life, etc.
insurance can help protect you if the unexpected happens.

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