LAW4IT.COM NEWSLETTER                            [2002] LAW4IT.COM 02
Law For Information Technology Newsletter
                         Web Site Hosting
     In the event  businesses wishing to create web sites do not have their own servers, it is
necessary to search for a company to host the web site.   A web site hosting agreement should be
executed to protect both the Host and the end user for which the web site is being hosted.  The
end user will want to ensure that the Host will assist should it want to change to a different Host
as well as ensure a specified level of security.  Also, the Host will the end user to agree to its rules
which will prevent the end user from publishing obscene or unlawful materials and the Host will
seek an indemnification from the end user to protect itself from legal action due to the materials
that the end user uploads onto its web page.  Therefore, it is very important for both parties to
have an agreement in place. 

     The following are the major issues that arise in a web site hosting agreement:

1.   Preamble Clauses:   provides necessary  background information.
2.   Duties: defines what each party is required to do in connection with the hosting of the web
     site.  For example, it would define what the host is providing such as the amount of
     permissible storage and who is responsible for maintaining the HLML code as well a
     description of any services to be provided by the Host.
3.   Fees and payment: defines the fees that the end user will pay and when and how payment
     is to be made.
4.   Rules:The host will request that the end user agree to its reasonable rules which it can
     change from time to time upon reasonable notice.
5.   Compliance with Laws:  The host will want to ensure that the end user complies with all
     laws and that the end user does not post any prohibited material that is obscene or
     infringers any copyright or trade mark.  Also of concern is that, due to the difficultly of
     determining jurisdictional issues, material that offends foreign jurisdiction such as those of
     the United States should be considered. .
6.   Limitation of Liability & Indemnity: The host will want to define and limit its liability with
     respect to down time and will seek an indemnification from the end user. The end user will
     seek the opposite
7.   Back up: defines if the host is responsible for backing up the system.
8.   Confidentiality and Non-Disclosure: The end user will want to ensure that its confidential
     information is protected and not shared with its competitors while the host will not want
     to be  not unduly restricted.
9.   Intellectual Property and Ownership It is important to define ownership of the result of the 
     web page . 
10.  Warranties and Representations: The end user will want warranties from the host but it
     needs to limit its liability to a reasonable level.
11.  Term and Termination: The parties will want to define the length of the contract and what
     events will result in termination for cause or otherwise.
12.  General Terms: The contract will contain general legal terms that provide for such items
     as jurisdiction and that the written contract is the complete contract.

     As can be seen from the foregoing, it is very important for both web site host  and end
users to have an agreement executed. 
Disclaimer:
This information is provided as general information only.   It is not intended to be provided as
legal advice.   The reader is advised to seek independent legal advice.
LAW4IT.COM NEWSLETTER         [2002] LAW4IT.COM 02
Law For Information Technology Newsletter
Copyright 2002 George C. Eyre All Rights Reserved
To be added to or removed from this newsletter, please send an email to george@law4it.com.