IT Contracts and the Terms that Matter Most

Those in the business world are constantly subjected to IT contracts. These can range from “shrink-wrap” software licenses, to accepting terms on a website, to full blown contracts with negotiations. As everything moves to digital platforms, apps, and online, it is essential to know what terms matter the most when reviewing IT contracts.

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First and foremost, many IT contracts contain standard contract terms. It is essential to review those with your lawyer, as they can impact renewal, termination, arbitration or litigation rights and more. 

With respect to IT-specific terms, you need to ensure that the terms in the agreement protect your data and your interests. Your contract should include adequate confidentiality provisions. Nondisclosure agreements are often insufficient to protect private data.

Depending on the type of IT contract and the nature of your business, you might want to include terms surrounding:

  • Encryption
  • Password requirements
  • Background checks
  • Breach responses
  • Audits and audit logs
  • Updates and backups 
  • Other security measures 

Next, look for costly and unnecessary fees. There could be hidden or unnecessary maintenance and support fees that you could reduce or eliminate in negotiations. 

You also want to be very aware of exceptions to any provisions that offer you protections. This could include the IT company’s indemnity to provide intellectual property. The IT vendor should be ensuring that they have all the rights to provide the IT you need. It could be detrimental to your business if you are made aware of a copyright infringement within their software down the line, if your contract doesn’t account for that situation.

Finally, make sure the contract has details regarding what you expect the technology to actually do for you. Clearly written contracts are essential for enforcement.

We help our clients negotiate IT contracts to protect their current and future interests. As always, we recommend that you consult with an attorney regarding your contracts to ensure they are compliant with laws and regulations.

We publish vital information on health law, business law, IT law, and more every Wednesday and Friday. To get this important information delivered directly to your mail box, subscribe to our blog!

Do you need help with your policies and procedures or negotiating contracts with third-party vendors?  We can help. To contact us about your legal needs, call Rickard & Associates today!

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