Who owns the data in a SaaS service?
The customer should own its own data, with the provider licensed to use it only to provide the service. The agreement should also cover returning or deleting it at the end.
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SaaS / software subscription agreement (England and Wales)
A SaaS (software as a service) agreement gives a customer subscription access to online software. It covers who may use it, fees and renewal, service levels and support, ownership of the software and of the customer's data, data protection, and liability — usually capped at a year's fees.
When you need one
Use one when you provide online software to business customers, or when your business subscribes to software on terms you can negotiate.
What it should contain
Subscription
The right to use the service, and for how many users.
Service levels
Availability, support and service credits.
Customer data
The customer owns its data; the provider only uses it to provide the service.
Data protection
UK GDPR Article 28 terms where personal data is processed.
Fees and renewal
Subscription fees, billing, renewal and price increases.
Liability
A cap, typically linked to the last 12 months' fees.
Points specific to England and Wales
- Exclusions and caps in business software contracts must be reasonable under the Unfair Contract Terms Act 1977. Where the provider processes personal data for the customer, the UK GDPR requires written processing terms.
Different rules can apply elsewhere in the UK: see the Scotland version of this guide.
Common mistakes
- No data protection terms although the software holds personal data.
- Automatic renewal the customer did not notice.
- No right for the customer to get its data back at the end.
See a specimen saas — a short illustration of the structure and key clauses, laid out as the app produces them.
Quick answers
What are service credits?
A reduction in fees if the provider misses the promised availability. Agreements often make them the customer's only remedy for downtime.
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Start drafting — freeBrowse all guidesReviewed 2026-09-24. General legal information about the law of England and Wales, not legal advice.