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Data Usage Term Form

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DATA USAGE TERM FORM

This Data Usage Term Form (the Agreement) is entered into as of (Effective Date) between:

Client Name:

Provider Name:

WHEREAS

WHEREAS, Client collects, owns or controls certain data, including personal and non-personal information, that is necessary for Provider to perform the services described herein;

WHEREAS, Provider requires access to such data to perform analytics, development, maintenance, or other services under this Agreement, and Client is willing to grant access subject to the terms below;

WHEREAS, the parties desire to set forth the permitted uses, restrictions, security obligations and other terms governing Provider's use of Client's data.

SCOPE OF WORK

Permitted Data Types (check all that apply):

Personal Identifiable Information (PII)    Sensitive Personal Data    Aggregated or Anonymized Data    Other:

Permitted Uses: Provider may use Client Data solely to the extent necessary to perform the services described in the Scope of Work and for internal quality assurance and product improvement, provided that any such use shall not identify individual data subjects unless expressly authorized in writing by Client.

Prohibited Uses: Provider shall not sell, rent, sublicense, sublicense-derived, or otherwise commercially exploit Client Data; shall not use Client Data to build a competing product; and shall not attempt to re-identify anonymized data.

DATA RETENTION, SECURITY, AND BREACH

Data Retention: Provider will retain Client Data only for the period necessary to fulfill its obligations under this Agreement or as required by law. Upon expiration or termination, Provider will securely delete or return Client Data in accordance with Client's instructions within days.

Security Measures: Provider shall implement and maintain administrative, technical and physical safeguards appropriate to the sensitivity of the Client Data, including encryption in transit and at rest, access controls, logging, and vulnerability management consistent with industry standards. Provider shall ensure that personnel with access to Client Data are bound by confidentiality obligations.

Breach Notification: In the event of any unauthorized access, use or disclosure of Client Data (a Security Incident), Provider shall notify Client without undue delay and, in any event, within calendar days of discovery, provide details of the incident, mitigation steps, and remediation plan.

THIRD PARTIES AND SUBPROCESSORS

Subprocessors: Provider may engage third-party subprocessors to perform parts of the services provided that such subprocessors are subject to written obligations no less protective than those set forth in this Agreement. Provider shall remain liable for any acts or omissions of its subprocessors with respect to Client Data.

PAYMENT TERMS

TERM AND TERMINATION

Term: This Agreement commences on and continues until unless earlier terminated in accordance with this section.

Termination for Convenience: Either party may terminate this Agreement upon written notice to the other party delivered at least days prior to the effective termination date.

Termination for Cause: Either party may terminate immediately if the other party materially breaches this Agreement and fails to cure such breach within 30 days after receipt of written notice specifying the breach. Upon termination, Provider shall cease use of Client Data and, at Client's election, promptly return or securely delete all Client Data as specified in the Data Retention clause.

CONFIDENTIALITY

Each party shall maintain as confidential all non-public information disclosed by the other party and designated in writing as confidential or that a reasonable person would understand to be confidential given the nature of the information and the circumstances of disclosure. Provider shall treat Client Data as Confidential Information and shall not disclose it except as necessary to perform the services or as required by law, provided Provider gives Client prompt notice of any legal demand and cooperates with Client's lawful efforts to limit disclosure.

REPRESENTATIONS, INDEMNITY, AND LIMITATION OF LIABILITY

Each party represents that it has the full right and authority to enter into this Agreement and to perform its obligations. Provider shall indemnify and hold harmless Client from and against third-party claims arising from Provider's unauthorized use or disclosure of Client Data or Provider's breach of its obligations under this Agreement, except to the extent such claims result from Client's willful misconduct or gross negligence.

Except for liability arising from gross negligence, willful misconduct, or Provider's unauthorized disclosure of Client Data, neither party's aggregate liability under this Agreement shall exceed the amounts actually paid by Client to Provider under this Agreement during the twelve (12) month period preceding the claim.

COMPLIANCE, AUDIT RIGHTS AND RECORDS

Compliance with Laws: Each party shall comply with all applicable laws and regulations in its performance under this Agreement. Provider shall not use Client Data in any manner that causes Client to be in violation of applicable law.

Audit Rights: Upon reasonable notice and during normal business hours, Client may request an audit or evidence of Provider's compliance with the requirements of this Agreement. Such audit shall be conducted no more than once annually unless a material security incident or breach is suspected.

GOVERNING LAW; ENTIRE AGREEMENT

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflict of laws principles.

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written. Any amendment must be in writing and signed by authorized representatives of both parties.

CERTIFICATIONS

Each party certifies that: (a) it has the authority to enter into this Agreement; (b) the information it provides to the other party is accurate to the best of its knowledge; and (c) it will comply with its obligations under this Agreement. Provider acknowledges it will not access or process Client Data except as authorized and will take commercially reasonable steps to prevent unauthorized access.

Client:

Party Label:

By:

Date:

Provider:

Party Label:

By:

Date:

Enter text✕

What the Data Usage Term Form Is and when it applies

A Data Usage Term Form documents the permitted uses, retention, sharing, and security measures for personally identifiable or sensitive data exchanged between parties. It typically specifies the legal basis for processing, the categories of data covered, authorized recipients, retention schedules, and procedures for access, correction, or deletion. Organizations use the form to obtain informed consent, demonstrate lawful handling under federal and state rules, and record obligations for processors and sub-processors. The document supports compliance with ESIGN and UETA where electronic execution is used and clarifies operational expectations across business units.

Why a clear Data Usage Term Form matters for compliance

A well-drafted Data Usage Term Form reduces legal risk by documenting consent, limiting permitted processing, and setting retention and security requirements. It provides evidence of intent and attribution for electronic signatures under the ESIGN Act (15 U.S.C. §7001) and supports contractual obligations required by HIPAA, state privacy laws, and industry-specific rules.

Why a clear Data Usage Term Form matters for compliance

Step-by-step: completing the Data Usage Term Form

Follow these steps to complete the form accurately and consistently.

  • 01
    1. Identify Parties: Enter full legal names and roles for all parties.
  • 02
    2. Define Data: List specific data categories and sensitive elements.
  • 03
    3. State Uses: Describe permitted processing purposes and limits.
  • 04
    4. Sign and Date: Capture signatures, dates, and any witness or notarization.

How to configure the form for online workflows

Recommended digital settings ensure accurate routing, authentication, and auditability when the form is completed electronically.

Field Configuration
Authentication Level Email + SMS code for most signers
Conditional Fields Show fields only when applicable
Attachments Allow supporting document uploads
Audit Trail Capture IP, timestamp, and actions

Digital signing flow for the Data Usage Term Form

A concise overview of the typical online signature lifecycle for this form.

  • Upload Document: Host the form as a PDF or DOCX ready for fields.
  • Place Fields: Add signature, date, and conditional inputs.
  • Send to Signers: Generate email invites or a secure link.
  • Capture Audit: Record authentication, IP, and timestamps.

Platform and integration considerations for eSubmission

Choose a solution that supports audit trails, secure storage, and your required integrations such as CRM, cloud storage, and enterprise SSO for operational continuity.

  • Document Formats: PDF, DOCX, or HTML accepted
  • Authentication: Email, SMS, or advanced methods
  • Integrations: CRM and storage connectors

Security and compliance items to include in the form

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
HIPAA BAA: Require BAA for protected health data
Access Controls: Role-based permissions and MFA
Audit Trail: Timestamp, IP, and action history
Regulatory Certs: SOC 2 Type II, ISO 27001
Retention Policy: Specify secure deletion and archiving

Key risks and penalties from improper data terms

Regulatory Fines: HIPAA and state privacy fines possible
Contract Liability: Breach of contract damages and indemnities
Invalid Consent: Poorly documented consent can be void
Data Breach Costs: Notification and remediation expenses
Tax Withholding: Incorrect TINs may trigger withholding
Reputational Harm: Loss of customer trust and business

Common preparation mistakes to avoid

  • Leaving permitted uses vague, which expands legal exposure and makes enforcement difficult.
  • Failing to align retention dates with regulatory obligations, creating potential compliance gaps or unnecessary data retention.
  • Not specifying third-party transfers or sub-processor obligations, which can cause disputes after an incident or audit.
  • Using inconsistent signer names or missing signature dates, undermining clear attribution and enforceability.

Who typically completes a Data Usage Term Form

Small businesses may rely on external counsel for initial templates; larger organizations embed the form into procurement and vendor management workflows.

  • Privacy officers and legal counsel who define permitted processing and legal basis.
  • IT and security leads who confirm technical safeguards and retention practices.
  • Business owners or contracting parties who approve purposes and third-party transfers.

Who signs and their typical responsibilities

Privacy Officer

Responsible for approving permitted uses, ensuring the form aligns with privacy policy, and coordinating responses to data subject requests across teams and vendors.

Contracting Executive

Signs on behalf of the organization to accept obligations, confirm operational controls, and authorize sub-processor relationships under the stated terms.

Essential clauses to include in a professional Data Usage Term Form

A comprehensive form combines legal, operational, and technical provisions to control data handling throughout its lifecycle.

Scope

Precise description of covered data categories, processing activities, and excluded data to prevent ambiguity and unexpected exposure.

Purpose Limitation

Explicit permitted uses and any prohibited processing; ties usage to specific business purposes and reduces regulatory risk.

Retention & Deletion

Clear retention periods, archival rules, and secure deletion methods aligned with applicable statutes and business needs.

Security Controls

Minimum technical and organizational measures required of processors, including encryption, access controls, and incident notification timelines.

Third-Party Transfers

Requirements for sub-processor approval, data transfer mechanisms, and contractual flow-down obligations to maintain chain-of-custody.

Revocation & Remedies

Process for withdrawing consent, remedying breaches, and available indemnities or limitations of liability between parties.

Real-world examples of how organizations use the form

Practical examples show how the form resolves operational and legal questions in different contexts.

Fertility Centers of Illinois

They standardized patient data permissions across clinics to reduce administrative delays.

  • Used signed forms to centralize patient consent tracking.
  • This reduced ambiguity about data sharing and supported HIPAA compliance while simplifying requests for records and transfers.

Martin Properties

A real estate firm captured tenant data permissions for marketing and repairs.

  • Embedded retention and third-party vendor clauses.
  • The standardized form made vendor onboarding faster, clarified liability for contractors, and reduced follow-up for consent verification.

Key timelines and regulatory response windows to note

Track effective dates, response timelines for access requests, and retention review schedules to meet legal obligations.

Form Effective Date:

Date specified in Effective Date field determines commencement of obligations.

Access Request Window:

Respond to data access or correction requests within 30–45 days depending on applicable law.

Retention Review:

Conduct retention reviews annually to confirm continued need for stored data.

Breach Notification:

Notify affected parties within applicable statutory windows after breach detection.

Review Cycle:

Reassess the form and controls at least every 12 months or after material changes.

Milestones from drafting to archival

A sequential view of the principal stages helps coordinate stakeholders and preserve evidence of compliance.

01

Drafting and Approval

Legal and privacy teams finalize permitted uses and retention rules.

02

Signer Execution

Parties sign electronically or physically with required authentication.

03

Operational Onboarding

IT implements access controls and data handling procedures.

04

Archival and Disposal

Retain the executed record and follow secure deletion at end of retention.

eSignature pricing and feature comparison relevant to the Data Usage Term Form

Compare starting price and core features affecting execution of the Data Usage Term Form. signNow is listed first per vendor ordering rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Yes, trial available Yes, trial available Yes, trial available Yes, trial available
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about the Data Usage Term Form

Answers to common questions about validity, notarization, revocation, and secure storage of completed forms.


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