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IT Service Agreements

Do I own the code my outsourced developers write?

Not automatically. Under Georgian copyright law, moral rights remain with the creator. You must have a written agreement explicitly transferring all economic rights to you ("work made for hire" clauses) to ensure you own the code.

What is an SLA and do I need one?

An SLA (Service Level Agreement) defines the expected standards of service, such as uptime or response time for bugs. It is highly recommended for ongoing support or maintenance contracts to ensure accountability.

Can I sign an IT contract electronically in Georgia?

Yes, electronic signatures are legally valid in Georgia. However, for significant high-value contracts, using a Qualified Electronic Signature (QES) provides stronger legal standing in court.

How are disputes resolved for international clients?

The contract should specify the governing law and jurisdiction. Typically, parties agree on Georgian courts or arbitration. For international clients, arbitration is often preferred for enforceability.

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IT Service Agreements: Legal Protection in the Tech Sector

In the modern digital era, where information technology is the driving force behind business, IT Service Agreements represent a critically important legal instrument for both clients and service providers or freelancers. In Georgia, where the IT sector is developing at a rapid pace and an increasing number of international and local companies are beginning operations, a properly drafted agreement is the guarantee of stable cooperation and risk mitigation. This document regulates the relationship between the technology service provider and the client, defining the scope of work, deadlines, quality standards, and intellectual property rights.

An IT Service Agreement is not merely a formal document; it is a detailed roadmap that determines the success of a project. Often, parties focus solely on price and deadlines, neglecting vital issues such as ownership rights to code, confidentiality, personal data protection, and liability in case of system failures. The involvement of a qualified lawyer in this process ensures that the agreement is balanced, complies with Georgian legislation, and protects your commercial interests from unforeseen legal disputes.

What Does an IT Service Agreement Cover?

An IT Service Agreement is a complex document that must encompass technical and legal nuances. Specialists on Legal.ge offer comprehensive services covering the following issues:

  • Detailed Statement of Work (SOW): A precise description of services, whether it be software development, IT support, website design, or system administration, to eliminate misunderstandings regarding expectations.
  • Regulation of Intellectual Property (IP) Rights: Determining who owns the created product (code, design, algorithm) — whether it is fully transferred to the client or if the provider retains certain rights.
  • Service Level Agreement (SLA): Establishing response times, system stability (Uptime), and deadlines for fixing bugs, with appropriate penalties for violations.
  • Confidentiality and Data Protection: Strict conditions regarding the protection of trade secrets and personal data, which is especially important for compliance with GDPR and Georgian legislation.
  • Acceptance Procedures: Criteria by which the client checks and accepts the performed work, as well as conditions for the testing period.
  • Limitation of Liability: Setting a cap on the financial liability of parties in case of damages, excluding intentional misconduct.

Common Scenarios and Real-World Examples

The need for IT agreements arises in diverse situations where technology and business intersect. Here are several common scenarios:

  • Software Development: A Georgian startup hires a team of developers to create a mobile application. The agreement must ensure that full copyright to the application code remains with the startup and that developers do not use the same code for competitors.
  • IT Outsourcing and Support: A large company hires an IT agency to maintain its internal network and servers. Here, SLA conditions are critical so that server downtime does not cause business paralysis and losses.
  • System Integration: A bank or financial institution signs an agreement for the integration of a new payment system. Security standards and data protection are the top priority here.
  • Collaboration with Freelancers: A foreign company hires a Georgian specialist remotely. The agreement regulates payment terms, tax obligations, and the transfer of intellectual property across borders.

Georgian Legal Framework

IT Service Agreements in Georgia are regulated by several key legislative acts, knowledge of which is essential for drafting a valid document:

The Civil Code of Georgia represents the foundation of contract law. It regulates contracts for work (where the result is key) and mandates (where the process is key). Mixed-type contracts are often used in the IT field. The Code also defines general conditions regarding breach of obligations and compensation for damages.

The Law of Georgia on Copyright and Related Rights is critically important for the IT sector. According to the law, computer programs are protected as literary works. Particular attention must be paid to the concept of "work made for hire" — if the agreement does not explicitly state the transfer of economic copyright rights, they may remain with the creator, which is a serious risk for the client.

The Law of Georgia on Personal Data Protection obliges parties to observe data processing standards, especially if the IT service implies access to user databases. This law imposes strict requirements on data processors and authorized persons.

Step-by-Step Service Process

Preparing an IT agreement in collaboration with Legal.ge specialists involves the following stages:

  1. Initial Audit and Requirements Analysis: The lawyer familiarizes themselves with the technical details of the project, the business model, and the parties' expectations.
  2. Structuring Terms: Critical points are defined — IP rights, payment schedule (Milestones), SLA, and liabilities.
  3. Drafting the Document: A primary version of the agreement is created, tailored to the specific IT project rather than a template standard.
  4. Negotiations: If necessary, the lawyer participates in negotiations with the other party to clarify terms.
  5. Signing and Execution: Finalizing the version and, if needed, providing instruction on its management (e.g., properly maintaining acceptance acts).

Why Choose Legal.ge?

IT law is a specific field that requires not only legal knowledge but also an understanding of technological processes. Legal.ge gives you access to lawyers who have experience in the IT sector and understand terms such as "Source Code," "Bug Fixing," "API Integration," and others. Specialists selected through our platform ensure that your contracts are not only legally sound but also practically enforceable and tailored to business interests. Find your IT law expert today on Legal.ge.

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