13 March 2023
While the SaaS industry grows, more often than not, the type of documents to be used gets confusing with the information available online. To make things simpler, we have enumerated the various types of agreements that are used in the SaaS industry and as to when these are actually used.
| Basis of Difference | EULA | TOS | SLA | MSSA |
| Full form | End User Licensing Agreement | Terms of Service | Service Level Agreement | Master Service Subscription Agreement |
| When is it used? | When a copy of the software program is licensed to the end-user for the purpose of installation and use on a system such as a laptop/ computer or mobile. | When there is a need to regulate the use of services by any of the users.
This is more particularly used when the service provider is more reliant on third parties for providing the services or when the product developed is relatively new and no specific service level can be guaranteed. |
When there is a need to establish clear and measurable guidelines for service being provided such as performance metrics, technical support, etc. | Used for any type of service provided in lieu of subscription fees. |
| Does it apply to SaaS? | No, as no service is being provided but a copy of the software is downloaded and used as a physical product. | Yes | Yes | Yes |
| What is covered? | Granting any user, a license to install and use a copy of the copyrighted software and/or application.
However, the ownership of the software remains with the company or the developer. This provides a defence against copyright infringement, software reverse engineering, and misuse of the software. |
General rules and regulations for the use of any software which is provided as a service, to any user, such as permitted uses, third party integration, restrictions on use and reverse engineering, termination and grievance redressal. | Covers the performance specifications for any type of software which is provided as a service, such as the quality, uptime, etc. general or specific to oneself or one service recipient.
This helps in retaining customers in the long run as the service provider provides specific service commitments. |
Covers all aspects regarding the provision of services such as terms of access granted to the software, liability, indemnifications, disclaimers, warranties, payment terms, termination, etc. |
| Typical examples | 1. Microsoft computer software https://www.microsoft.com/en-us/windowsvirtualdesktop/eula 2. Apple applications such iTunes https://www.apple.com/legal/internet-services/itunes/dev/stdeula/ 3. Grammarly software https://grammarlysoftware.com/terms-use-eula |
1. Zoho https://www.zoho.com/en-in/terms.html 2. Byjus application https://dbel-us.byjus.com/legal/terms-of-service.html 3. Chargebee https://www.chargebee.com/company/terms/ |
1. Zoho https://www.zoho.com/people/help/adminguide/SLA.html 2. Whatfix https://support.whatfix.com/docs/service-level-agreement-sla 3. WebEngage https://webengage.com/sla/ |
1. Whatfix chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://whatfix.com/wp-content/uploads/2021/11/MSA-India-Clean-Template.docx.pdf 2. Digital Hotelier https://www.digitalhotelier.com/msa/ 3. Salesforce https://www.salesforce.com/content/dam/web/en_us/www/documents/legal/Salesforce_MSA.pdf |
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