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Why Monthly Legal Subscriptions Are Replacing Traditional Law Firms
Over the past few years, businesses across the United States have started rethinking how they work with lawyers. The old model of hourly billing often created stress, unpredictability, and hesitation. Many companies waited to call their attorney until a problem became serious because they were worried about what the bill would look like later.
8 Legal Tips When You Start a Business
So you’ve decided to start a new business, time to make a to-do list. There are several important steps to complete to ensure that your business is properly established and meets legal requirements. We’re here to help make sure you get all your boxes checked off correctly.
FAQs
Open allIs an MOU legally binding?
Most MOUs are not legally binding, but they can include binding provisions if clearly stated, such as confidentiality or exclusivity.
What’s the biggest risk in signing an LOI?
Overcommitting - such as granting long exclusivity or including too much detail - can lock you into unfavorable terms before negotiations are complete.
Can you walk away from an LOI?
Yes, unless you are bound by specific provisions. However, backing out without good reason may damage future relationships.
Why do investors and buyers use LOIs?
LOIs outline deal terms upfront, giving both sides confidence before investing in due diligence and full contract drafting.
Is a Letter of Intent legally binding?
Most of an LOI is non-binding, but certain provisions like confidentiality and exclusivity are enforceable.
Why do SaaS startups need a Data Processing Addendum (DPA)?
If you handle personal data, a DPA ensures compliance with GDPR, CCPA, and similar laws. Many enterprise clients require it before signing.
Who owns the customer data in a SaaS Agreement?
Usually the customer, though the provider may retain limited rights to use the data for service delivery, analytics, or improvements.
Do SaaS Agreements need Service Level Agreements (SLAs)?
Yes, especially in B2B deals. SLAs provide uptime guarantees and remedies for service failures, which are critical for enterprise customers.
What makes a SaaS Agreement different from a software license?
Traditional licenses transfer a copy of the software, while SaaS Agreements grant access to use the software as a service without ownership.
Who owns improvements made to licensed IP?
It depends on the agreement. Without clear terms, disputes often arise over whether the licensee or licensor owns enhancements.
How are royalties typically structured?
They can be flat fees, per-user charges, or revenue-based percentages. Audit rights are critical to confirm accurate reporting.
Should startups offer exclusive licenses?
Exclusivity can motivate partners but carries risk. If granted, tie exclusivity to performance obligations like sales targets or minimum royalties.
What’s the difference between licensing and selling IP?
Selling transfers ownership permanently, while licensing allows others to use your IP under defined terms while you retain ownership.
Should startups offer exclusive licenses?
Exclusivity can motivate partners but carries risk. If granted, tie exclusivity to performance obligations like sales targets or minimum royalties.
What’s the difference between licensing and selling IP?
Selling transfers ownership permanently, while licensing allows others to use your IP under defined terms while you retain ownership.