Hiring a lawyer for your software as a service (SaaS) contracts is an important decision that can have a significant impact on how well your contract negotiations go and how clean the due diligence process will be if you go on to raise cash. A good SaaS lawyer can help you navigate the difficult legal landscape of the software industry, protect and build value in your intellectual property, and help you avoid legal disputes with enterprise customers. However, with so many lawyers to choose from, it can be challenging to know where to start. Here are some super important factors to consider when you’re hiring a lawyer for your SaaS company.
Expertise in Tech and Intellectual Property Law
The first thing you should look for when hiring a lawyer for your SaaS company is expertise in technology and intellectual property law. This is crucial because the software industry is unique, and you need a lawyer who understands the legal issues specific to software development and distribution. A good technology lawyer should be familiar with software licensing, data privacy, cybersecurity, and other legal issues that can arise in the SaaS industry. They should also be able to help you protect your intellectual property, such as your software code, patents, and trademarks.
Experience with the SaaS Contracts – It’s Essential
It’s also important to hire a lawyer who has experience working with SaaS companies. In fact this is quite hard. There are a lot of lawyers who claim to be experts or claim to have experience in SaaS when they have very little. An experienced SaaS lawyer will have a better understanding of the specific legal challenges that will come up along the way, and they will, more often than you think. They will be familiar with the SaaS business model, how recurring revenue and renewals work and the legal issues that arise from subscription-based services. They can help you navigate the complexities of contract negotiations, data privacy laws, and other legal matters that are unique to the SaaS industry. Make sure you ask for references.
A Lawyer That Understands Risk
Lawyers that have had extensive experience with successful SaaS companies will understand that their role is to help founders and sales leaders evaluate risk. This is a very important lens to put on their role in your company. Lawyers, by their nature are very risk adverse and they run contrary to a lot of founders who know that risks have to be taken to allow a company to get started and grow. Finding a SaaS lawyer that understands this balance and won’t stonewall contract negotiations is very important.
Good Contract Negotiation Skills
When you’re hiring a lawyer for your SaaS company, you need someone who can explain complex legal issues in a way that you can understand. Your lawyer should be able to communicate effectively, both in writing and verbally. They should be able to explain the legal implications of your business decisions in a way that you can understand, and they should be responsive to your questions and concerns.
Availability and Responsiveness – crunch time
The availability and responsiveness of your lawyer are also important factors to consider. You need a lawyer who is available when you need them, and who will respond promptly to your inquiries. Your lawyer should be willing to meet with you regularly to discuss legal issues and provide updates on the status of your legal matters. They should also be willing to work with your schedule and be flexible when necessary.
Hiring a SaaS Lawyer Costs and Billing Practices
The costs and billing practices of your lawyer are also important considerations. You should choose a lawyer who is transparent about their billing practices and who provides detailed invoices that show the services provided and the associated costs. Your lawyer should also be willing to work within your budget and provide cost-effective solutions to your legal problems. You may want to consider hiring a lawyer who offers flat-rate fees or other alternative billing arrangements.
Lawyer Trust and Working Style
Finally, you should hire a lawyer that you trust and with whom you have good chemistry. Your lawyer should be someone that you feel comfortable working with, and who shares your values and goals. You should be able to rely on your lawyer to provide honest and straightforward advice, even if it’s not what you want to hear. Your lawyer should also be someone who is committed to your success and who will work tirelessly to protect your interests.
When it comes to making a decision on hiring a lawyer for your SaaS company requires careful consideration of several factors. You need a lawyer with expertise in technology and intellectual property law, experience in the SaaS industry, good communication skills, availability and responsiveness, transparent billing practices, and who you trust and have good chemistry with. By taking these factors into account, you can find a lawyer who can help you navigate the legal challenges of the SaaS industry and protect your business interests.
