Usage data in a SaaS: who does it belong to?

This is a question that comes up often in SaaS contract negotiations. And a frequent source of misunderstanding between SaaS companiesand customers. When dealing with the data generated by the use of the service, confusion reigns: the customer thinks that he owns it, the Saas company considers it to be its data. So who is right?

What are we talking about?

First, it is necessary to distinguish between customer data and usage data.

• Customer data is what they import into SaaS: documents, files, personal information, business data. They belong to him without any discussion.
• Usage data, on the other hand, is derived data. These are technical data generated by the operation of the platform:
  • connection logs,
  • feature usage rate,
  • number of errors encountered,
  • time spent on an interface,
  • aggregate statistics,
  • navigation paths...

This data is not provided by the customer. They are picked up by the system in the background.

Why is this SaaS usage data a problem?

The customer uses the tool. He often deduces that everything generated during use belongs to him. That's understandable, but it's not legally accurate. Usage data is not created by the customer, but by the operation of the service.

For his part, the SaaS company sees it as a valuable raw material. This is what allows him to:

• understand the real use of SaaS,
• prioritize product evolutions,
• detect malfunctions,
• improve the performance of the platform,
• build useful statistics for your roadmaps.

Clearly, this data is not useful for the customer, but essential for the publisher. They are an integral part of the product improvement cycle. It is thanks to them that SaaS becomes more stable, faster, more relevant.

Should they be banned or shared?

Certainly not forbid them. But you have to supervise them. The key is transparency and data protection.

A SaaS company can't just collect this data in any way. It must respect a few fundamental rules:

• Anonymization: usage data must be processed in a way that does not identify a company or a person.
• Aggregation: Data must be mixed with data from other customers and cannot be used alone.
• No direct commercial purpose: this data should not be resold or used for prospecting purposes without agreement.
• Clear information in the contract: the customer must be informed that the SaaS company is collecting this data and why.

If these conditions are met, it is perfectly legitimate for the SaaS company to use this data. And that he owns the rights to it.

What should a SaaS contract include about this ?

A clause on usage data must:

• Precisely define the data concerned: it is not a question of mixing customer data and usage data.
• Explain the purpose of their treatment: technical improvement, statistical use, product improvement.
• Ensuring the protection of privacy: in compliance with the RGPD and the principles of minimization.
• Reassure the customer that there is no misuse: no profiling, no commercial exploitation without authorization.

It is not a question of giving free rein to the SaaS company, nor of depriving the customer of all control. It is a question of establishing a clear, balanced framework that respects the interests of both parties.

Why is it a real contractual issue in SaaS ?

Data is a sensitive subject. And in a SaaS contract, a poorly written clause on this point can become an obstacle to signing. The customer needs guarantees. The SaaS company needs flexibility. The right legal balance makes it possible to respond to both.

• A well-constructed clause avoids unnecessary friction.
• It secures the SaaS company legal basis for collecting and exploiting usage data.
• It protects the image of the service provider and reinforces the customer's trust.

Conclusion

Usage data is not customer data, but it should be treated just as seriously. They allow the SaaS company to develop its SaaS. They are only useful if they are well supervised. If you are a SaaS company and want to protect your right to use this data, I can help you write a clause that is clear, balanced and in compliance with regulations.

‍