c9daa7e8_s_in_Cloud_Computing_Contracts__Comments
[Issue] Indemnification by vendor [Comments] 
Vendor form contracts rarely include any form of indemnification benefitting us, but such protection is critical in at least two areas: infringement of third-party intellectual property rights and inappropriate disclosure or data breach, both of which are largely, if not entirely, in the vendor's sole control, and both of which can be extremely costly to defend and remedy. (If, as has happened, a vendor refuses to accept liability for either of these issues on the ground that it's a "black hole," we should take that as a great warning about the vendor’s lack of confidence in its own service and look elsewhere – what the vendor is really saying is that it expects us to be its insurance company.) Ideally, the vendor would indemnify us for all of its acts and omissions.
IT: Legal and Quasi-Legal Issues in Cloud Computing Contracts
Comments