KV TechLegal
Sectors

Manufacturing and industrial

Manufacturers adopting ERP systems, automation and connected equipment.

In short

Technology contracts for ERP, automation and connected equipment need different terms from a purchase order for machinery.

Manufacturers are adopting ERP systems, automation, sensors and connected equipment. Each of these comes with a technology contract, and many of those contracts are negotiated by procurement teams on terms written for buying physical goods.

Connected machines produce large amounts of operational data. The contracts should state who owns that data, whether the vendor may use it, and what happens to it when the relationship ends.

Manufacturers that belong to international groups often share systems and data with affiliates abroad. These arrangements need intra-group agreements, and the employee and customer data involved has to be handled in line with the DPDP Act.

What usually comes up

Under the DPDP Act

Employee and contractor data, including data from access control, CCTV and connected devices, falls under the Act whether it is processed with consent or on the employment ground, and needs a defined retention period.

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