The characteristic feature of the IT sector is the wide differences in the level of legal awareness among various entrepreneurs. Some take procedural matters very seriously, on the basis that every business must have a solid foundation, while others ignore them completely - sometimes out of lack of proper knowledge, sometimes by making a conscious decision to "live in the moment" and capitalize on the profit as long as it is being generated. For obvious reasons, we believe that legal service is essential, and without it, the IT enterprise, built with considerable cost and effort, transforms into a colossus on clay legs, which may be shaken by the first serious conflict with a strategic client or an inspection by state authorities.
Lawyers are at times disliked in the IT industry. They are treated as vehicle brakes, getting in the way of "doing business". We, on the other hand, believe that every good car needs brakes, and that driving too fast always carries the risk of a disaster.
So what are the basic tasks of IT legal services? These may include:
- taking care of the proper form of contracts concluded with clients - their legal compliance, protection of the service provider's interests, assistance in negotiations with clients;
- preparing and supervising the proper content of the contracts with the personnel - both with employees and with the contractors;
- securing the intellectual property rights of the client ordering legal services;
- developing and implementing corresponding regulations and policies - in the areas of labor law, personal data protection, anti-mobbing, anti-discrimination and anti-corruption, and codes of conduct – which are more and more demanded by clients;
- keeping an eye on the rules for the lawful processing of personal data;
- providing advice in case of any legal uncertainties that arise daily in conducting a business (for example, questions concerning the required form of legal documentation, deadlines for termination of contracts, claims resulting from the contract for both parties);
- ensuring the safety of the client's managers - many board members are unaware of the responsibility their function entails and are convinced that since they operate in the form of a limited liability company, nothing much will affect them. They are often reassured in this by their personnel who, in pursuit of bonuses and commissions, want to "do business."
Legal services for the IT industry cannot be formalized and need to be adapted to the international work environment, high expectations of clients, and tight deadlines. It's worth remembering not only the law regulations, but also business problems and, where possible, draw the client's attention to them and help them solve such issues.
Our experience in supporting clients from the IT industry, shows that this sector is becoming more and more challenging on many levels. Contracts with clients are frequently packed with extremely risky provisions, the significance of which entrepreneurs are sometimes not aware of (the differences between terminating a contract and withdrawing from it, differences in the responsibilities of a body leasing provider and a managed service provider, requirements for effective acquisition of copyrights, the distinction between the company and the personnel acting on its behalf, requirements for a legal form of specific legal acts, which neglecting ends with an invalid contract – for example, in case of the transfer of copyrights).
To paraphrase a well-known joke about a blind man on an obstacle track, who answers "I don't see any obstacles" when asked if he can finish the track, we perceive obstacles and other problems, we help to overcome them and solve them before it is necessary to deal with the consequences of ignoring them.
Related articles:
IT services outsourcing
Outsourcing of IT personnel
Confidentiality protection in IT
Workation in IT
Managed services vs body leasing
Entrepreneur test in IT
Recruitment in IT - personal data
Publication date: 03.10.2021.