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SaaS / software subscription agreement (Scotland)

Under a SaaS (software as a service) agreement, a customer obtains access to online software on a subscription basis. It sets out the permitted users, fees and renewal arrangements, support and service levels, data protection, who owns the software and the customer's data, and liability, which is normally capped at one year's fees.

Prepared by a retired English qualified solicitor (LLB, LLM) · reviewed · Scots law · how we draft · recent changes

When you need one

You need one when your business supplies online software to business clients, or when it subscribes to software on terms that are open to negotiation.

What it should contain

Subscription

Permission to use the service and the number of users covered.

Service levels

Uptime levels, support and service credits.

Customer data

Data stays the customer's property; the provider may use it only to deliver the service.

Data protection

Article 28 UK GDPR terms wherever personal data is processed.

Fees and renewal

Subscription charges, invoicing, renewal and any rise in price.

Liability

A limit, usually tied to fees paid in the prior 12 months.

Points specific to Scotland

Common mistakes

View a specimen SaaS agreement, a brief example showing the structure and main clauses in the layout the app generates.

Quick answers

Who owns the data in a SaaS service in Scotland?

The customer should own its data, and the provider should hold only a licence to use it for delivering the service. The agreement ought also to deal with the return or deletion of the data when it comes to an end.

What are service credits in a Scottish SaaS agreement?

Fee reductions that apply when the provider falls short of the availability it promised. Agreements frequently make these the only remedy the customer has for downtime.

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Reviewed 2026-09-24. General legal information about Scots law, not legal advice.