Design partner programs are a valuable tool for founders, but there’s often confusion around the paperwork – especially when GDPR enters the picture. Let’s start with which contracts you might use and how they interact.
The Basics of Design Partner Agreements and Data Processing
When you’re running an early-stage startup, design partner programs can be crucial for validating product-market fit and securing early customers. This might include you getting access to and working with your design partner’s data. If that includes personal data on EU citizens or residents (either the company’s employees or end users), the General Data Protection Regulation, or GDPR, will apply.
Understanding the Key Agreements
The three most common contracts you might encounter are:
- Design Partner Agreement – Your core agreement with these early users
- Data Processing Agreement – Required for GDPR compliance
- Cloud Service Agreement (CSA): Commercial contract for more traditional vendor/customer relationships
Do You Need All Three Agreements?
Some founders ask: “If I use a design partner agreement and need a data processing agreement for GDPR, do I also need a CSA?”
The short answer? No. Here’s why:
- The Data Processing Agreement supplements the main agreement in place between you and your customer
- In this case, the Design Partner Agreement IS the main agreement
- A separate CSA with the same customer during the design partner phase would be redundant and conflict with the Design Partner Agreement
Transitioning from Design Partner to Customer
Keep in mind: Design partner programs aren’t meant to last forever. You’ll typically run them for a few months, until some or all of the following are true:
- You hit specific performance milestones
- Your product is ready for general availability
- Design partners are ready to become paying customers
Once you reach this transition point, you’ll swap out the design partner agreement for a CSA or another sales contract like the Software License Agreement. Think of it as graduation day for your customer relationship.
Key Takeaway
Don’t overcomplicate your paperwork. If you already have an agreement in place with your design partners, your DPA can supplement that – no additional CSA is required. When you’re ready to move on to a traditional vendor-customer relationship, that’s when you’ll introduce the CSA, replacing (not adding to) your design partner agreement.