brandleys

Technology

SaaS and licensing.

A subscription or licence deal is a grant of permission dressed as a commercial relationship. Almost every dispute about one comes back to what was granted, to whom, and what happens when it ends. The commercial terms get the attention and the definitions decide the outcome.

What this looks like when it goes wrong

The most common failure is a grant that stopped describing the customer. The licence was written for a team, and the software is now used across a group after an acquisition, or by contractors, or by an affiliate in another country. Nobody concealed anything. The definition of who may use the product simply stopped matching the organisation using it.

The next is an order form that contradicts the terms behind it. A short document was signed to get the deal done, the master terms say something different on liability, term or data, and the clause deciding which document wins is either missing or points in an unhelpful direction. Both sides can read their own page correctly and reach opposite answers.

Then there is renewal. A subscription rolls forward on terms nobody revisited, an increase arrives that the contract does not clearly permit, or a customer believes they gave notice and the mechanism says otherwise. None of this is complicated. It is simply not written down in a way anyone can act on.

The version that costs most is a reseller arrangement where nobody defined what the reseller was selling. Whether the intermediary buys and resells in its own name or introduces customers to you was never settled, so nobody knows who owes the end customer, who supports them, whose terms they are on, or what happens to those customers when the arrangement ends.

What actually decides it

The grant is the product. What is licensed, to whom, for what purposes, in what environments, in which territories, and for how long relative to payment. Named users, seats, an organisation, a group, affiliates, contractors and test environments are all different things, and every downstream argument depends on which of them was chosen. Scope disputes are usually arguments about a definition rather than allegations of misconduct.

Document hierarchy decides the rest. Order forms, master terms, data protection terms, service commitments and policies referenced by link all sit in one stack, and something has to say which prevails. Where a policy can be changed unilaterally and is incorporated by a link, whether the customer is bound by later versions of it turns on how the incorporation was drafted rather than on the fact that the link exists.

Service commitments are only as strong as their remedies. What you promise about availability, support and response, and what follows if you miss, are separate questions. Whether a credit is the only remedy available or sits alongside everything else changes the commercial meaning of the whole schedule, and that is a drafting choice rather than a standard.

Channel arrangements are decided by what the intermediary actually does rather than by the word used to describe them. Someone genuinely acting on your behalf may attract protections on termination that a party buying and reselling would not, and restrictions on territory, customer type, resale pricing and exclusivity engage competition considerations that cannot be assumed away because both sides signed. The termination position matters most of all, because it decides whether the customers the channel brought stay with you or leave with them.

What we do

The grant, written precisely

Who may use the software, for what, where and in what environments, defined so growth does not create a breach.

Order forms and terms reconciled

One stack of documents that agree with each other, with a priority clause that points where you intended.

Term, renewal and increases

Renewal and pricing mechanics written so they can be operated without a negotiation every cycle.

Service commitments and remedies

Availability and support promises matched to what the business can actually deliver, with remedies that are deliberate.

Reseller and channel agreements

Who sells, who supports, who owns the customer relationship, and what happens to it when the arrangement ends.

Exit, data and continuity

What the customer gets back, what you may keep, and what survives termination on both sides.

When to spend nothing

A product selling to small customers on a card does not need negotiated agreements. Clear standard terms, applied consistently, are better than a bespoke document for every account, and the effort is better spent making sure the standard terms are actually used than on making them longer. The same is true of a channel programme: building the paperwork for resellers before there are resellers produces documents that will be rewritten before anybody signs one of them.

It is also worth resisting the instinct to fight every enterprise redline. Most of what a large customer marks up is preference. A small number of points genuinely change your risk, and knowing which they are lets you concede quickly on the rest. Deals lost to a long negotiation over clauses nobody would ever rely on are a real and avoidable cost.

Before anything is sent

Positions harden the moment the other side takes advice, and the quiet routes stop being available once a demand has gone out. While nothing has been sent, everything is still open.