What's in a data licensing agreement?
Most agreements describe the scope of the records, the permitted use of a copy, how long the permission lasts, what must stay confidential, and what happens if there's a dispute. They should also say you keep the originals. Exact terms come from the buyer, not from Balance Sheet Data.
This is a plain overview of common topics, not a form and not legal advice. If a paper is put in front of you, your own counsel should read it.
What should the scope section usually cover?
Scope should say which records are in, which years they cover, and what is excluded. A tight description protects both sides. If client information or tax return information is mentioned at all, the paper should not assume consent you don't have.
For why those categories are special, see AICPA confidentiality and data licensing and IRC 7216 and data licensing.
Is this a sale of the firm or of the originals?
A license of a copy is not a sale of the firm, and it should not be a transfer of your originals. The agreement ought to say you keep using your files. If a draft reads like a sale of everything on the server, that's a reason to pause and call your counsel.
I explain the license-versus-sale language in What is data licensing?
Who decides the terms, and is any payout promised?
The buyer proposes terms after its own review. Acceptance, pricing, and permitted use are the buyer's decision, then yours if you want to sign. Nothing on this site is a promised amount or a promised yes. Balance Sheet Data is not a party to that agreement.
If you have questions first, book a free 15-minute call or apply directly.
FAQ
What's in a data licensing agreement?
Most agreements describe the scope of the records, the permitted use of a copy, how long the permission lasts, what must stay confidential, and what happens if there's a dispute. They should also say you keep the originals. Exact terms come from the buyer, not from Balance Sheet Data.
What should the scope section usually cover?
Scope should say which records are in, which years they cover, and what is excluded. A tight description protects both sides. If client information or tax return information is mentioned at all, the paper should not assume consent you don't have.
Is this a sale of the firm or of the originals?
A license of a copy is not a sale of the firm, and it should not be a transfer of your originals. The agreement ought to say you keep using your files. If a draft reads like a sale of everything on the server, that's a reason to pause and call your counsel.
Who decides the terms, and is any payout promised?
The buyer proposes terms after its own review. Acceptance, pricing, and permitted use are the buyer's decision, then yours if you want to sign. Nothing on this site is a promised amount or a promised yes. Balance Sheet Data is not a party to that agreement.