TechnologyContract
Software Transactions: An Overview
Software is bought, sold, rented, built, embedded, and resold in a dizzying variety of deals, and the legal rules that govern them are surprisingly unsettled. This guide maps the whole landscape of software transactions--on-premises licenses, SaaS and cloud subscriptions, custom development agreements, and reseller, VAR, and OEM channel deals--and explains how each is structured and why the differences matter. It tackles the foundational puzzle of which law applies (the UCC Article 2 versus common-law debate and the cautionary tale of UCITA), how clickwrap contracts are formed and enforced, who owns the intellectual property when code is written to order, and how data, privacy, and open-source obligations flow through a deal. Worked hypotheticals walk through the negotiation of indemnities, warranties, liability caps, service levels, and source-code escrow, including the modern cloud-escrow analog. It closes with the merger, acquisition, and asset-transfer problems that catch dealmakers off guard, a section on the disputes that actually arise, an FAQ, and cross-links to deeper companion articles.