Web Kit

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These forms are essential for anyone establishing a Web-based business. Get the entire set in one economical package, all in Microsoft Word format so that you can revise and customize to whatever extent necessary.

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CHECKLIST OF ISSUES FOR WEB SITE DEVELOPMENT CONTRACTS

Many companies contract out the development of their Web sites to third party developers. Companies should ensure that the contract with the Web site developer address several key areas, including ownership and intellectual property rights, the development process, functionality of the end product, problems that may arise and corrective measures required to be undertaken, covenants of the developer, confidentiality, and other provisions. The following is a checklist of issues.

A.

Ownership and Intellectual Property Issues. The development agreement should clearly address the issue of ownership of and intellectual property issues related to the content, screens, software, and information developed. The agreement can address:

  • That the Web site developer is an independent contractor performing a "work for hire" service under the Copyright Act;
  • That all screens, graphics, domain names, content and the look-and-feel of the site developed shall be owned solely by the company, together with all underlying software, object code, digital programming, source code, and the like;
  • Provisions addressing whether the developer retains rights to use any materials or software it gains from its creation of the Web site;
  • That all intellectual property developed in connection with the site will be owned solely by the company;
  • That the developer in developing the site, will not infringe or violate the copyright and other intellectual property rights of third parties;
  • That if the developer is bundling or using any prior intellectual property that it owns and of which it wishes to keep ownership, that the company will receive a perpetual, irrevocable, worldwide, royalty free transferable license to the same;
  • Which party is responsible for securing various rights, licenses, clearances, and other permissions related to works, graphics or other copyrighted materials to be used or otherwise incorporated in the Web site; and
  • That a copyright notice will be displayed on designated parts of the company's site.

B.

The Development Process. The development agreement can address various issues associated with the development of the site, progress payments, and acceptance procedures. Such provisions could address:

  • A timetable and budget for completion of the site, including specific payment milestones as progress is made on site development;
    • A mechanism allowing for change orders by the company regarding the specifications for the site, without the change orders resulting in exorbitant extra costs or delays;
    • That the developer will timely provide documentation and source codes for all software associated with the site;
    • That the developer will train employees of the company to use and maintain the software associated with the site, both initially and at the time of each upgrade; the number of business days and the location of the training can be specified;
    • That the developer assumes responsibility for transferring the site- including all software- to the company's server and (if applicable) agrees to oversee the site's installation on that server;
    • That the developer provides alternative screen page shots for the company to review and decide upon;
    • A commitment by the developer to a period of joint beta testing of the site and a subsequent Acceptance Testing period during which the company may evaluate the site on its premises to make sure the site functions as anticipated and in accordance with the agreement;
    • That the company will have the right to reject the site if it does not meet designated specifications and the company options regarding corrections at the time of a rejection; and
    • That a copyright notice will be displayed on each page of the company's site;

C.

Functionality of the Site. The development agreement should clearly specify the anticipated functionality and technological requirements from the site, including provisions that address:

  • Use by the developer of the most current standards of technology in development of the site;
  • The maximum download time for any web page;
  • The inclusion of a user option for a low-graphics version of the site in order to minimize download time;
  • The desired speed and bandwidth of the Internet connection;
  • That the site be compatible with the latest versions of Internet browser software, especially the Microsoft, Netscape and AOL browsers;
    • That the site will be functioning 24 hours a day, seven days a week, except for scheduled maintenance/downtime;
    • The number of users that will be able to simultaneously access the site as well as response time for user requests;
    • How the site will be properly integrated with the company's intranet or other data server structure;
    • That additions, corrections or modifications to the site may be made by the company without interference with site operations;
    • The security safeguards, procedures and firewalls that the site must contain;
    • The expected functionality of online credit verification and acceptance procedures; and
The scope and procedure for the company being able to easily access, record, and compile information about the sites users and customers....

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