In the current context of significant development of the information technology (IT) in Romania, it can be noticed an increase of the number of specific consultancy and service agreements that have been concluded between professionals operating in this area, such as software development and maintenance agreements, service agreements in the IT area, IT outsourcing agreements or software as a service (SaaS) agreement. Thus, we will briefly present you the main contractual provisions that need to be observed by the contracting parties. A specialized lawyer in information technology, media and telecommunications, commercial law and M&A in Romania will be able to advise you on drafting and/or reviewing such agreements.

Statistics: How many companies have been incorporated in Romania in the field of ICT?

The number of companies incorporated in Romania in the field of ICT increased by 53% in 2021, compared to 2020. Therefore in 2020 a number of 7146 companies were incorporated, having this object of activity in Romania, and in 2021 a number of 10964 companies were incorporated in Romania in the field of ICT.

Relevant aspects when concluding a consultancy and IT service agreement in Romania

As the number of companies incorporated in Romania in the field of ICT has increased, the demand for the legal services in Romania in the field of information technology, media and telecommunications has also increased.

A first relevant aspect that must be taken into account by the contracting parties is to determine as clear as possible the terms and conditions for the provision of services provided in the consultancy and service agreements in the IT area in Romania.

At the same time, it is recommended that the object of the agreement to be as detailed and accurate as possible in order to not allow any interpretations in the execution of the agreement.

The parties should also expressly provide that in case of non-compliance as a result of failure to comply with the essential obligations provided in the agreement, the party in fault shall be held liable according to the provisions of the agreement in Romania.

Moreover, the agreement shall provide the conditions under which each contracting party may request the termination of the agreement in Romania and the possibility of assigning the agreement to third parties.

The confidentiality clause is of particular interest in the light of the obligations of the parties regarding the provision, use or maintenance of the confidentiality of the information transmitted by them during the course of the contractual relationship.

In addition, the parties may impose limitations on the period of time applicable to the obligations of the parties with respect to confidential information, as well as with respect to certain categories of information that cannot be construed as confidential. A specialized lawyer in information technology, media and telecommunications, commercial law and M&A in Romania can analyze the provisions of the agreement that may have a significant impact on the business relations in Romania between the parties and may propose the addition of specific clauses with the aim of protecting the interests of the party assisted by the lawyer in Romania.

Another essential clause for the IT consultancy and service agreements in Romania is the clause related to copyright and intellectual or industrial property rights over products/goods designed, developed or created as per the agreement, including software systems and procedures, know-how or working documents. To this end, the provider shall declare that she/he is the sole owner of the copyright and of any other intellectual or industrial property rights that bear over all works carried out for the beneficiary during the execution of the agreement in Romania.

Last but not least, in the context of the mandatory application of the General Data Protection Regulation in Romania, including in business relations between IT professionals in Romania, each contracting party shall declare and guarantee that all personal data transmitted to the other party shall be collected, processed and transferred in accordance with the provisions of the regulation in Romania.

In order to carry out these steps, Pavel, Mărgărit and Associates Romanian Law Firm recommend contacting a lawyer specialized in information technology, media and telecommunications, commercial law and M&A in order to analyze the provisions of each IT consultancy and service agreement in Romania, as well as providing legal advice to the assisted party with the aim of mitigating any potential contractual risks.

Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm’s clients are foreign and top local companies and high worth individuals. In 2021, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked second place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2021. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm can be found on the website www.avocatpavel.ro.