Before you start using the virtual data room, a little preparatory work is required. You need to find a provider who will provide access and technical support for the service. You also need to set up access to such a repository and (if necessary) train your employees. If you have already found a company that will provide you with the necessary installation and maintenance services for your virtual data room, you need to enter into an agreement with them. Read on to find out why you need one.
What should the cooperation agreement between you and the provider contain?
Generally, companies that provide virtual data room installation services offer their customers their own standard agreement:
- the parties to the agreement – on the one hand, the client company and, on the other hand, the company providing the service;
- the subject of the agreement – whether the parties are agreeing on one-off services for installation or configuration of the data room or a long-term comprehensive partnership;
- rights and obligations of the parties to the agreement – what the parties can and must do in the process of cooperation, including who owns the virtual data room and the documents stored in it;
- the duration of the agreement – how long this cooperation will last;
- the manner in which any conflicts will be resolved;
- place and time of signing the agreement.
Depending on the specifics of the provider’s business there may be more or fewer sections in the agreement. The number of clauses in each section of the agreement may also vary, as well as their contents.
Why is a virtual data room ownership agreement needed?
Like any other legal agreement, an ownership contract is primarily needed to protect the rights and interests of its parties. In this case, the provider company is providing its products for the use of the other party. It simply needs to ensure fair cooperation on the part of the counterparty as legal away as possible.
The customer also takes a risk when he or she hires a particular company to provide virtual data room products and services. If the ownership of the virtual data room as a product remains with the service provider, who will own the ownership and use of the documents that will be stored in that room? As you can see, the problem is serious enough to ignore such an important aspect of collaboration as drafting and signing an ownership agreement.
As with all legal documents, ownership agreements are only drawn up in writing in accordance with current legal regulations. Copies of the ownership contract are provided to the parties to the agreement and cannot be changed after the contract has been signed. However, it is worth bearing in mind that such a contract is a type of public agreement and must be available to an unlimited number of users. In addition, its structure must be clear and the same for all clients. it can only be changed if the provider company reorganizes or changes its business profile.
Remember, the reputation and success of the provider company depend on how well the virtual data room ownership contract is drafted.