Drafting Service Level Agreements: Best Practices for Corporate and Technology Counsel

This CLE course will guide business and technology counsel on drafting service level provisions in technology agreements, with a focus on lessons from recent and instructive cases.

The technology services environment continues to evolve rapidly, and drafting service level agreements (SLAs) presents unique challenges for counsel to customers, service providers, and vendors.

SLAs at their most uncomplicated address the current level of anticipated service. Well-drafted and effective SLAs also outline what happens when the unanticipated occurs, relationships break down, or the parties need to make changes, including additions, deletions, and modifications to the service levels.

Cases involving technology services and SaaS agreements, including State of Indiana v. IBM and Genetec Inc. v. PROS Inc., provide useful lessons and reminders for business counsel negotiating SLAs. These decisions illustrate the importance of defining performance requirements and material breach, addressing repeated or cumulative service failures, coordinating service credits with other remedies and termination rights, documenting technical requirements, and complying with notice-and-cure provisions.

Listen as our panel of attorneys experienced in drafting IT contracts discusses best practices for negotiating service levels in technology agreements.