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INTRODUCTION

SaaS products have become extremely popular, however, most business folks under appreciate the complexity of the legal fine print and the legal issues behind SaaS. We want to share with you our legal checklist to help you understand the legal framework of SaaS products and solve potential legal bottlenecks.

1. PRIVACY

The data collection/processing and privacy issues are usually the trigger when lawyers get involved in Saas. From a legal perspective it is crucial to understand the market roll out of SaaS product to new markets as each market has its own privacy and data protection regime. One size fits all regime for data collection really does not work in connection to SaaS products. SaaS products have to carefully tailored for each jurisdiction. In the US there is a mosaic of both federal and state law privacy laws, including Children Online Privacy Protection Act (COPA), Health Insurance Portability and Accountability Act (HIPAA), California Consumer Privacy Act (CCPA) and New York Shield Act. Another complexity for SaaS products is the cross-border storage and transfer of information that may increase the provider’s exposure to liability for non-compliance with unfamiliar regulatory laws. In particular a tricky area is data transfer between the US and the EU. …

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Cytowski & Partners

Law firm specializing in startups, series A and US expansion. No legal advice I No attorney client relationship I Attorney advertising

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