✔️Why are Terms of Service important?

With the rise of SaaS, cloud-based services, and generative AI software, the legal significance of Terms of Service has grown substantially.

For B2B software providers in particular, key issues such as license scope, updates, security, and intellectual property rights are all defined within the Terms — giving them the same or even greater legal force than a formal contract.

Decent Law Firm has extensive experience advising IT and software companies, drafting and reviewing software distribution contracts, and preparing multilingual Terms of Service for global clients.

✔️Terms of Service are not just a consent checkbox

The moment a user clicks “Agree,” your Terms of Service become a legally binding contract between your company and the user. If this “contract” is poorly written, the following risks may arise:

• Intellectual Property (IP) Infringement
  Without proper protection clauses, your software source code or digital content may be copied or distributed without authorization, leaving you with limited legal recourse.
• Disputes and Liability Issues
  In the event of service outages, hacking incidents, or user conflicts, unclear terms can make it difficult to assign responsibility — leading to significant losses.
• Regulatory Sanctions
  If your Terms contain unfair clauses under the Act on the Regulation of Terms and Conditions or the Software Industry Promotion Act, such clauses may be deemed void, leaving your company without legal protection.

✔️Essential Clauses in Software Terms of Service

Effective Terms not only prevent disputes but also serve as your first line of legal defense. The following items are essential in practice:

1. 1. License Scope and Restrictions
   Clearly define the number of devices, concurrent users, and permitted usage (commercial/non-commercial).
2. 2. Update and Maintenance Policy
   Specify whether updates are free or paid, when support ends, and how major changes are communicated.
3. 3. Intellectual Property Protection
   Include detailed provisions on copyright ownership and the prohibition of reverse engineering, copying, or redistribution.
4. 4. Service Restriction and Account Suspension
   Set clear standards for sanctions, levels of enforcement, and procedures for appeal or reinstatement.
5. 5. Linkage with Privacy Policy
   Align the Terms with your Privacy Policy by specifying data collection items and processing purposes.

✔️From English Contracts to AI Disputes — Global Standard Terms of Service

Expanding to the global market?

Then drafting Terms of Service that meet international legal standards is not optional — it’s essential.

• Cloud/SaaS:
  Service Level Agreements (SLA), data ownership, and data migration procedures upon termination.
• Artificial Intelligence (AI):
  Consent for use of training data, and provisions preventing algorithmic bias or discrimination.
• Open Source:
  Proper disclosure and compliance with open-source license obligations.

In today’s rapidly evolving landscape of AI, big data, and SaaS, legal expertise in software Terms of Service is a critical factor that determines a company’s risk management capability.

Decent Law Firm goes beyond traditional legal advisory — we partner with our clients to support sustainable business growth.

🔔 Deep understanding of the IT and software industry

🔔 Global-level multilingual capabilities

🔔 Proactive risk management approach

Let Decent Law Firm handle the drafting and review of your Terms of Service with precision and professionalism.