Legal Protection for Network Service Providers

A Network Service Provider (NSP) works hand in hand with the companies that provide actual internet access. The NSP will structure the flow of the internet access so that all computers/users within an organization are able to access the internet. Network Service Providers are responsible for expanding the company’s infrastructure as their needs grow and ensuring that the data provided from the ISP is easily accessible and readily available at all times.

If a company’s network goes down, it can often times mean a massive loss in revenue due to its employees not being able to fulfill their jobs adequately, loss of intra/interoffice communications and many other issues. As a NSP, you do not want to be held responsible for any downtimes associated with the network infrastructure you provided.

No matter what the scope of your job is, whether you provide network services to small or large businesses, the legal aspects of your contract must be clearly defined. Well written contracts will eliminate any doubt as to who will be held liable should the network go down for an extended period of time and lead to significant revenue loss. Furthermore, making certain that you are insured should a liability suit be brought against you will help to alleviate the financial responsibility placed solely on you as an individual.

It is a good idea, whenever going into a new job as a Network Service Provider, that the contract is clearly defined and that you are adequately insured. No matter who is at fault, if the contract states that you are responsible, you will be an easy target for a company to potentially pin their losses upon.

Non-Disclosure Agreements for Software Developers

People that work in or around the software development industry are often privy to confidential information regarding the software they are currently developing. Receptionists, developers, and everyone else in the office has access to information regarding a particular project. With an NDA in place, the software developer can have greater protection for  his ideas.  If it is, he has legal recourse thanks to his non-disclosure agreement.

Having a well-written non-disclosure agreement will provide an extra measure of security to those who develop software programs for a living. Non Disclosure Agreements set conditions for the exchange and use of confidential information and materials between the developer and a business associate.  It requires the other party to hold sensitive information confidential . More importantly, it gives the software developer legal recourse if the software is used illegally or if the project is exposed to anyone other than whom the NDA allows.

Sometimes both parties desire protection of their confidential information.  A mutual non-disclosure agreement is a common way to keep information protected. A mutual non-disclosure agreement protects both parties when they need to share information without the general public knowing. These types of agreements are usually used to outline individual business processes in a confidential manner. Companies for whom the developer is creating software may require a non-disclosure agreement in place so that additional protection is in place to ensure that all those who are privy to the details of the software’s development do not share it with anyone else than those who are directly involved in the project.  There are many scenarios where a non-disclosure agreement can be a vital tool.

Importance of Contract Writing Professionals

Well Written Contracts Only Please!

If you work primarily in the IT field, it makes sense to use contracts that have been written by attorneys specializing in the IT field. I have heard many stories from those in the field that constantly turn to the “easiest” option when it comes to the drafting of their legal contracts and rarely do those stories end well. I always take great care to ensure that the contracts that bind my services and the services of those doing work for me have been tailor made to my exact field. A well written document protects me as an entrepreneur and it also ensures that the little differences between contracting in different fields do not get overlooked.

Protect Intellectual Property With a Non-Disclosure Agreement

Non-disclosure Agreements (NDA) are crucial to ensuring the protection of your intellectual property. When you take a job on or when you contract out work a NDA helps to cover your liabilities. With a NDA in place you can feel safer discussing your project with a contractor; and inversely, your clients can feel comfortable working on their project with you. I use a non-disclosure agreement every single time I hire a contractor, or every time I am hired to perform a job for someone else. I do it to protect myself from any legal issues that might arise as the result of the unauthorized use of either party’s intellectual property.

I like to use NDA’s in my work because I do not want to worry about what my sub-contractors might or might not do with my client’s information. Worrying about meeting deadlines and beating competitor’s quotes are enough for me to worry about on a daily basis.

NDA’s are also a great selling point when it comes to discussing a new contract. Letting them know I am ready and willing to use a NDA is sometimes that extra push that closes a deal.

Software Development Contracts 101

If you’ve decided to outsource a software development project and now need to sign a contract, here are a few basic things to keep in mind. This is not legal advice, rather it’s compilation of a few things I found helpful for my own experiences.

First, make sure your project is well-defined. If you are having an e-commerce application developed, see that your development contract clearly states all of the functionality and the user interface (UI) completely. It is also good to clarify what process your developer will use throughout the process. This way you can easily monitor your project’s progress. By explicitly detailing your project, you are more likely to have your project completed correctly and in a timely fashion. As part of this process, make sure you define the documentation process. Clear and accurate documentation is a necessity, and without it your project can easily become bogged down.

Secondly, you are going to want to cover the software’s licenses. Who owns the work product? Is the software completely proprietary? What, if any, open source software projects are going to be used to help piece your project together? If you do not completely understand all of the license issues for your software, make sure you retain legal counsel.

Thirdly, ensure that the payment process is clearly spelled out. Check into what assurances you will receive from your software developers as to their financial viability. I had a project that was completely lost when our development firm was sued by a prior client and subsequently went bankrupt. These are important topics that should be addressed with your developer before committing to a business agreement.

Confirm that you have a warranty on your product. Code breaks. Make sure you have some reasonable expectations that your product will be reliable for a reasonable amount of time.

If this is your first time getting involved with a software development contract, make sure you use professional assistance. I would not suggest writing a software development contract on your own. Best of luck on your project and remember: you’ve turned to the experts to create your software. You might as well use experts to make sure your contract is also done correctly too.

How Do You Make a Better Independent Contractor Agreement?

The best part about being an independent contractor is the opportunity to be your own boss. On the flip side, the worst part about being an independent contractor has to be assuming all of the responsibility of being your own boss. One of the biggest issues that independent contractors face is the actual contracts under which we all must work. As an independent contractor, I understand first hand that your contracts are your life blood. If you don’t have any contracts you aren’t working, however, writing or developing a contract is a daunting task.
Here is a basic list of items that your contract should cover:

• The specific job or services to be performed.
• How much you are to be paid for your services.
• The time frame within which your services are to be rendered.
• Who owns the work product resulting from your services? This is a key issue, especially in IT independent contract agreements. Make sure that if you are giving up the rights to your work product that you are being fairly compensated.
• How often should the progress of the project be reported?
• The issue of disclosure is a huge one. Are you going to be subject to a non-disclosure agreement? Do you need to hold your employer to a non-disclosure agreement? It is important to remember to protect your intellectual property. Part of that is protecting your processes. If you are sharing sensitive material, knowledge or information make sure that you, as well as your employer are protected.

Once you have established general criteria for what you want your independent contractor agreement to contain, my suggestion would be to find a professional legal form service to provide you with your finished product. It is going to be easier for you to purchase a contract and have it tailored to your needs or to make slight modifications to a purchased contract then it would be to learn the appropriate laws and then subsequently write your own contract.

Legal Forms Websites – What to Look For

If I tried to woo potential clients without showing them a portfolio, or even a testimonial, how would I be able to land any business? It would be great if I could just tell people that I know web design inside and out and I’ll show them after they pay me.  The same is true for legal form websites: you need to know what you’re getting before you pay for it. There are many sites out there that provide existing contract templates and agreements for web designers, so make sure you use a company that won’t surprise you.

Ideally, a legal forms website should explain what will be included in their contracts in advance and show you the outline of what you are buying.  Using online legal form templates is a huge timesaver if you have no idea how to create a valid web design agreement.  Once you’ve downloaded the software, you can edit the agreements to your own specifications and then use it right away.  Using a service like this is so much better than paying twenty dollars for a .PDF that you know is just being resold to you in the first place.  Plus, once you’ve downloaded the software that contains the contracts and agreements, you can re-use them anytime – just edit to your specifications & go!

Ways to Ensure Payment for Independent Contractors

You have a prospective client or a project on the line and now all you have to do is close the deal.  How do you bid the project out?  What is the best way to quote a rate?  There might not be a 100% surefire method, but I have a few techniques I have found helpful.

A lot of my bidding and rate quoting is based on personal knowledge and proximity to my prospective employer.  When I am able to meet people face-to-face, I am usually able to gauge their interest in working with me and their general budgetary concerns.  When I work with long-distance clients or with clients via internet, I usually have to spell my rates out more clearly and my closing rate isn’t nearly as great as my in-person clients.

Working as an independent contractor, I always ask for a certain percentage upfront on all jobs over $500.  I generally ask for one-third upfront.  That just ensures that my client is serious, fully engaged in the process, and it makes it next to impossible for client not to pay.

Once I have completed the first phase of proofs, I usually collect the second third of the project.  I have found this makes setting appointments with clients to review their project much easier.  It also makes it difficult for clients to take my design work and develop it themselves.

After the project is completed to the client’s satisfaction, I give them the final bill with any and all necessary corrections.  It is not uncommon for clients to initially want to put in some “sweat” equity on their project.  Very often when it comes time for clients to deliver their end of the bargain, they do not.  That is why I have to correct their final bill.  I always promise to keep their final bill within ten percent of the original estimate unless I have received their written consent.

As an independent contractor, I use these steps if I am billing out on an hourly rate or for a fixed rate.  I find it useful to estimate the number of hours it will take me to complete an entire job.  This is helpful for the client so they know what to expect and it helps me to budget my time.

Nailing down your client’s budgetary concerns and needs as soon as possible can be extremely helpful.  If your client is asking for something that cannot be achieved within their intended budget, you need to either decide to take a hit on the project or let them know.  Being open and honest is always the best policy.  Part of being open is being willing to find new, creative ways to complete a project within your client’s budget.

What To Do When a Breach of Contract Occurs

Material Breach?

Breaches of contract can often turn into a confusing maze of questions and legal concerns, leaving you feeling lost and full of questions: What can I do when a contract has been breached?  Who do I turn to?  Where do I go from here?

First off, you have to be sure that there is, in fact, a breach of contract.  Once you determine if there is a breach; you have to assess to what degree or extent the contract has been breached.  Is it a minor breach?  Is it a material breach?  Is it a fundamental breach?  Is it an anticipatory breach?

Who do you turn to?  Well, that depends on more factors that cannot be easily redressed in a simple blog post.  If you have a decent understanding of your principle contract and the matter is, at most, a few thousand dollars, representing yourself in small claims court might be the best course of action. An attorney can provide counsel to help you determine if small claims court is right for you. If the matter is for a larger sum of money, for a slander issue, or if the issue(s) pertain to intellectual property rights, your first course of action should be to retain counsel.

If you decide to go it on your own, here are a few simple suggestions.  Again, this is not legal advice.  Determine where in your contract breaches have occurred.  Call those breaches to the attention of the party in breach.  Be sure to create a paper trail.  Do not make any inflammatory statements or any statements lacking facts or proof.  The last thing you want to do is make slanderous statements or accusations and exacerbate the situation.  Keep a cool and level head and if you are not able to come to an amicable resolution, turn the issue over to professionals.

Remember if you have a well written, solidly binding contract you should never find yourself with any breach-of-contract issues.  Planning and forethought go a long way.  Finally, avoid legal battles whenever possible. Long legal battles will only hurt you in the end.