ASP group unveils contract guidelines

The ASP Industry Consortium and the World Intellectual Property Organisation (WIPO) have released a set of recommendations and guidelines that address global dispute avoidance and resolution procedures for application service providers (ASPs).

The guidelines come after the two groups pledged last year to work together to remedy disputes and to aid lawyers, judges, arbitrators and other "alternative dispute resolution" experts who may not be familiar with the ASP industry.

"It was one year ago that we stood here in Geneva and announced our plans to work together on something that would help build consumer confidence in what was then still a largely unknown way of delivering computer applications and services," said Traver Gruen-Kennedy, chairman of the ASP Industry Consortium. "A year later, ASPs have become increasingly common throughout the world, which makes our efforts toward avoiding and resolving ASP business disputes that much more important."

Contained in the guide is an ASP industry primer and examples of where disputes are likely to occur in the ASP supply chain. The guide also features a series of dispute resolution methods, both in terms of litigation and alternatives to litigation, with advantages, disadvantages and descriptions of commonly used alternative dispute resolution techniques. The guide offers advice on management of and insurance protection for the ASP business relationship.

Descriptions are also offered in operational ASP best practices in areas such as problem identification, customer help desk and service level agreements (SLAs), focusing on terms and conditions for the network, host and application components to the supply chain. Recommendations are also given on drafting dispute resolution clauses for typical ASP contracts, taking into account applicable law, the scope of relief and a number of other factors.

Gruen-Kennedy also presented the WIPO with the "ASP Industry Consortium Global Achievement Award," honoring the organisation's work in the ASP industry's path toward broader customer adoption. He was joined in presenting the award by Paula Hunter, chief market strategist for Xevo, who this month succeeds Gruen-Kennedy as the ASP Industry Consortium's chairman.

"ASPs represent the future of computing because, among other reasons, they transcend borders with an efficiency and effectiveness required in today's global marketplace," added Gruen-Kennedy, chief strategist and vice president, Strategy at Citrix Systems, Inc. "Cyberspace has no borders, yet the world still operates under a system of cultural and historic borders, meaning a process is required to address business disputes that may occur in a cross-border relationship."

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