Many software and product companies, whether through licensing or commercialization of intellectual property products and services, are being built predominantly upon their intellectual property. Moreover, intellectual property plays a fundamental role in companies’ investment decisions. Intellectual property can be used as collateral to obtain financing, for valuation purposes in an equity offering, and can be the impetus for a merger or acquisition.
An SLA is a document accompanying a technology or vendor agreement that defines the service expectations for the offering. The SLA may contain provisions on product and service support, response times, uptime guarantees, and system availability during scheduled maintenance or upgrading (if applicable). Paired with these expectations are provisions detailing what happens in the event a service level is not met. For example, a customer may be entitled to service credits or other remedies if there is an outage lasting longer than what is permissible under the SLA.