Software agreement and customizations?

Dispute resolution under a software agreement or other contract will typically be governed by the terms of the contract. A well-prepared software agreement will include a specific section or other provision saying exactly how a dispute will be resolved. These can (and often should) be very detailed. Sometimes, different types of disputes will have different dispute mechanisms. For example, a dispute over whether a deliverable was accepted may be subject to one approach, a dispute over payment may be governed by another, and a dispute over a claim of a violation of third-party rights by yet a third. Again, it depends on the terms of the contract. Hopefully, your contract includes a clear and specific provision for dispute resolution. If not, then you would default to trying to work it out. If that is not realistic, if the parties are willing to try mediation, that is often far more preferable to a lawsuit, both because it is usually far less expensive, and because it is not public. But, mediation is voluntary and, if the parties don't come to an agreement with the assistance of the neutral mediator, there is nothing from the mediation that can be enforced. That leaves the parties with a lawsuit or, if the parties agree (or if the contract provides for it) arbitration might be used instead of a lawsuit. Arbitration is often (but not always) less expensive. But, it will be confidential, whereas a lawsuit is a public matter. My dispute resolution provisions often include a stepped approach. Before a party is entitled to sue or initiate arbitration, they have to try to work it out between themselves for a specified period of time. Failing that, often I provide that mediation must be the next step. Only after that, if resolution by mediation fails, is arbitration or a lawsuit permitted. A good dispute resolution provision should include a number of other provisions, including: governing law, location of the proceeding (venue), forum (e.g., federal or state court, or AAA or JAMS as the arbitrator), number of arbitrators if applicable, rules of evidence and other rules in an arbitration if applicable, waiver of procedural defenses to venue and forum, a "loser pays" provision (or not), possibly a cap on "damages" (money the loser must pay), a contract-based statute of limitations, a finality provision (no appeals allowed), how and where an award under arbitration can be enforced ... among other considerations. Also, in many cases you will want a carefully prepared "equitable remedies" provision that is separate from any other dispute resolution provisions. This would allow a party to go to a court to ask the court not for money, but for force the other party to do or not do something. This often covers things like confidentiality, non-disparagement, indemnification, misuse by one party of property owned by the other, or other situations where payment of money is not applicable or won't be enough. Finally, these days, it is not a bad idea to include a specific provision allowing remote proceedings during any time and place where governing authorities have declared a health emergency related to a contagion ... or even just where an in-person proceeding can fairly be substituted with technology like Zoom to help keep costs down and otherwise for general convenience of the parties and "judicial economy."

You are smart to consider GDPR, but also should consider US Privacy Policies in connection with the agreement. There are several states the already have GDPR level of privacy policies and over 20 states with bills introduced as well. A well formed policy will consider the data collected, where it is stored and how it is transferred, who has access to the data, the purpose of the data for use in the app, the ability to sell or reuse the data for additional purposes, and when the data should be deleted. This process should be contemplated and consistent within employee manuals, data access procedures, and implemented in master services agreements across all vendors, subcontractors, and suppliers. One final note is that you need to practice what you write, because a published privacy policy that is not followed may be considered a deceptive trade practice by the FTC resulting in fines on top of the costs of a breach.

Your question is actually several questions in one and would need a lenthy explanation. My suggestion is to submit a request to have attorneys submit bids to advise you and help you with your endeavors. I would be very happy to help you, and you can request me, or you can have multiple attornies submit bids.

Your maintenance obligations will largely depend on what is written into the software agreement between you and your partner. If you and your partner agree you can have a very broad or very limited obligation, but it should be clear so you avoid any disputes in the future. A comprehensive agreement can include any provisions you and your partner agree on as long as it does not violate State Law or Public Policy.

The first step to resolving a dispute is to look at what the software agreement says. The agreement may have terms or conditions in there that discuss what happens when there is a dispute. Without seeing the agreement it is difficult to say what you could do to best protect your rights and resolve the dispute.