Common use of Customer Ownership of Data Clause in Contracts

Customer Ownership of Data. If the software vendor will have access to the customer ’s data entered into the software, then the customer will want a clear pro- vision stating that the customer owns all data that is entered into the vendor’s systems or systems of a third-party hosting entity under vendor’s control, plus any modifications to that data. The provision should clarify whether the vendor has any rights to use the data other than in performance of its obligations under the agreement. In some cases, vendors may desire to use the data (usually on an anonymous basis) for system optimization or for other analytical purposes. The provisions should also clarify customer’s rights to require return and/ or destruction of any customer data and the format of the data being returned.

Customer Ownership of Data. If the software vendor will have access to the customer customer’s data entered into the software, then the customer will want a clear pro- vision stating that the customer owns all data that is entered into the vendor’s systems or systems of a third-party hosting entity under vendor’s control, plus any modifications to that data. The provision should clarify whether the vendor has any rights to use the data other than in performance of its obligations under the agreement. In some cases, vendors may desire to use the data (usually on an anonymous basis) for system optimization or for other analytical purposes. The provisions should also clarify customer’s rights to require return and/ or destruction of any customer data and the format of the data being returned.