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Smartcat Customer Agreement

Current version. Last updated - [23.12.2021]

RECITALS

A. Smartcat is the owner and provider of an online platform located at https://www.smartcat.com (the 鈥淧latform鈥) for translation services and translation project management (the 鈥淪ervices鈥); and
B. Customer is a translation agency or an end-customer interested in the Services.

For the purposes of this Agreement Smartcat means Smartcat Platform Inc., a legal entity registered under the laws of the United States of America. If you have executed a separate written agreement with any of Smartcat affiliates, this Customer Agreement does not apply to you.

We reserve the right at all times to remove or modify any part of this Agreement unilaterally. We shall notify you by posting an updated Agreement on the Platform. Your use of the Platform after posting the updated version shall mean your acceptance of the updated Agreement. In case you use a corporate account, only the administrator of that corporate account will be notified. The administrator of the corporate account and not Smartcat is solely responsible for further notification of changes to other members of the corporate account.

Once you complete the mandatory fields of your profile to register as a Customer and accept this Customer Agreement, you represent and warrant to Smartcat that: (i) you are authorized to bind yourself; (ii) you agree to be bound by the Terms of Service www.smartcat.com/terms/ (鈥淭OS鈥); and (iii) you agree to be considered a Customer.

If you do not agree with this Agreement, you are not eligible to submit Service Tasks on the www.smartcat.com website (the 鈥淧latform鈥).

For the purposes of this Agreement, the 鈥淐ustomer鈥 means a User of the Platform which submits a Service Task on the Platform and provides payment for such Service Task.

1. SERVICES

1.1 Services. Both Translation and Supplementary Services.

1.2 Translation Services. Smartcat will provide translation and related Services (editing, post-editing, proofreading, interpreting, etc.) with respect to Customer Materials as detailed in one or more service orders placed by Customer through Customer鈥檚 account dashboard on the Platform or otherwise, as mutually agreed (鈥淪ervice Tasks鈥).

1.3 Supplementary Services. Smartcat will provide Supplementary Services (i.e. subscription package, machine translation, optical character recognition, translation memory, smart words, etc.) selected by Customer through Customer鈥檚 account dashboard on the Platform or as set forth in the Annexes.

1.4 Customer Materials. Any content uploaded by Customer to the Platform.

1.5 Platform Terms of Service. Customer鈥檚 use of the Platform in connection with receipt of the Services shall be governed by TOS. This Agreement and the Annexes will prevail to the extent of any inconsistency with the TOS.

1.6 Delivery of Translated Works; Acceptance.
(a) Customer accepts and acknowledges that Smartcat relies solely on the use of automation and software quality control tools to perform quality control over Translation Services provided to Customer under this Agreement. Customer takes full and final responsibility for its review of the quality of the completed translation of Customer Materials (鈥淭ranslated Works鈥) unless Customer is using the Autopilot feature of the Platform as it is defined in the Annexes in which case Smartcat provides a lifetime quality guarantee with respect to Translation Services. Customer takes responsibility for acceptance of Translated Works by Customer pursuant to subsection (b) below.
(b) Smartcat will submit Translated Works to Customer for Customer鈥檚 review as to compliance with requirements and specifications identified in the applicable Service Task (鈥淎cceptance Review鈥). Customer will complete its Acceptance Review within five (5) business days unless another period is agreed upon by the Parties (鈥淩eview Period鈥). Prior to the expiration of the Review Period, Customer shall provide Smartcat with notice through Customer鈥檚 account dashboard on the Platform of Customer鈥檚 Acceptance of the Translated Works by clicking 鈥渄one鈥 or 鈥渁ccept鈥 (鈥淎cceptance鈥) or of the Translated Works鈥 failure to meet Customer鈥檚 acceptance criteria (鈥淩ejection鈥), provided however, that failure by Customer to deliver any notice in accordance with this section during the Review Period, will constitute automatic Acceptance of the subject Translated Works by Customer. Acceptance generates an obligation of the Customer to pay for the Translation Services. Failure by Smartcat to deliver Translated Works to Customer within the timeframe identified therefore in the applicable Service Task may constitute cause for a Rejection of such Translated Works by Customer.
(c) In the event of a justified Rejection by Customer, Smartcat will, at the option of Customer, either: (i) use reasonable commercial efforts to correct and remedy the failure(s) or deficiency(ies) identified by Customer (using the same or another Supplier (as defined in Section 1.7(a)) in Customer鈥檚 discretion), or (ii) negotiate with Customer in good faith a discount to the fees for the Services relating to the Translated Works which were the subject of a Rejection. With respect to a Rejection resulting solely from a delay in delivery, the maximum discount that Smartcat may offer will be capped at 15%.
(d) Smartcat鈥檚 obligations under subsection (c) comprise Customer鈥檚 sole and exclusive remedy and Smartcat鈥檚 sole obligation and liability for a Rejection of Translated Works by Customer for any reason.

1.7 Suppliers.
(a) Smartcat in each case will engage the services of such subcontractors registered on the Platform as Smartcat deems necessary to perform the Translation Services under this Agreement (鈥淪uppliers鈥).
(b) Smartcat shall be wholly responsible for payment to the Suppliers of their fees in connection with performing the Translation Services.
(c) Customer may request that Smartcat either (i) use, replace or assign additional Suppliers to a Service Task, or (ii) not use or remove specific Suppliers from a Service Task, and Smartcat will use reasonable commercial efforts to accommodate Customer requests.
(d) Customer may invite Suppliers to register on the Platform via an invitation link. Smartcat does not provide any additional services to such Suppliers (including, but not limited to, listing Supplier鈥檚 profile on the Platform search) except those services that are required to establish and maintain efficient collaboration and delivery of the results of the Service Task.
(e) Customer agrees, during the term of this Agreement and for three (3) years thereafter, not to solicit any Suppliers (except for Suppliers invited by the Customer as per par.1.7(d) above) for employment or consulting, directly or indirectly, for Customer or for any business or organization in which Customer, or any of the beneficial owners of Customer, if Customer is a legal entity, has an ownership interest of any kind. For the avoidance of doubt, Suppliers are considered to be invited by Customer if: (i) such Supplier鈥檚 account was not viewed on the Platform by Customer prior to invitation, (ii) the Supplier鈥檚 account on the Platform was registered by the invitation link generated from Customer鈥檚 account with the Platform.
(f) Smartcat shall be wholly responsible for payment to the Suppliers of their fees in connection with performing the Translation Services. In no event shall Suppliers be considered employees of the Customer. The Customer agrees not to use the Platform for assigning Service Tasks or performing Service Tasks with Suppliers with whom the Customer has an employer-employee relationship.

1.8 Delays. In the event of (a) a delay by Customer in delivering Customer Materials or responding to questions relating to Customer Materials, (b) a delay due to Customer鈥檚 request for changes to Customer Materials or any other terms of the applicable Service Task, (c) a dispute in good faith between the parties as to whether Translated Works meet the requirements specified in the applicable Service Task, (d) a delay due to any third-party鈥檚 act, failure to act or delay in performing any obligation whatsoever, other than the act, failure to act or delay by a Supplier, or (e) any other delay incurred as a result of Customer鈥檚 actions, the delivery schedule set forth in the Service Task shall be deemed postponed for an equivalent period. No such delay shall relieve or suspend Customer鈥檚 obligation to pay Smartcat under Section 2 hereof and, in addition to such payment obligations, Customer shall pay for all reasonable expenses incurred by Smartcat in connection with any such delay. In the event of delay due to the act, failure to act or delay in performing obligations by one or more Suppliers, Customer鈥檚 sole recourse shall be to request that such Suppliers shall be replaced and Smartcat鈥檚 duties shall be considered met upon so replacing the Suppliers, as applicable.

2. PAYMENT TERMS

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2.1 Service Fees.

2.1.1. Subject to section 2.4. below, payment for the Supplementary Services can be made via the Platform or based on the invoice. Payment for the Supplementary Services shall be always made in advance unless agreed otherwise in Annexes.

2.1.2. Customer agrees to pay the fees for the Translation Services as set forth in one or more Service Tasks. Payment for the Translation Services could be carried out as in one of the following ways:
(a) Advance payment if agreed with Smartcat. Unused funds could be returned to the Customer upon request or termination of the Agreement.
(b) After acceptance of the Service Task. The Customer is hereby granted the right to agree with Smartcat an installment way of payment for the Translations Services in accordance with conditions that will be offered and accepted by the Customer on the Platform.
(c) On a monthly basis if agreed with Smartcat.

2.2 Additional Fees. Customer agrees to pay Smartcat additional fees, calculated as set forth in the applicable Service Tasks in each of the following cases, or as otherwise agreed between Smartcat and Customer:
(a) Customer makes changes in the Customer Materials after the execution of a Service Task with respect thereto; or
(b) Customer requests changes to Translated Works after delivery thereof to Customer because of Customer鈥檚 preferences as to style or vocabulary, and such changes are not required for accuracy; or
(c) Customer requests delivery of Translated Works in a file and text format not agreed upon; or
(d) Customer agrees to compensate Smartcat for direct supplementary expenses related to a Service Task by choosing the relevant option in the Customer鈥檚 account on the Platform. Smartcat shall not provide the Customer with a proof of such expenses

2.3 Payments. All invoiced fees are due immediately upon receipt of the invoice and in no event any later than thirty (30) calendar days following the invoice date unless agreed otherwise in the Annexes. If any payment of fees hereunder are not paid when due, Customer agrees to pay Smartcat interest at a rate of 1.5% per month of the payment amount then due.

2.4 By selecting ACH debit or credit card as its preferred payment method and by linking Customer鈥檚 bank account or credit card to the online payment service integrated with the Platform, Customer authorizes Smartcat to automatically debit the bank account or credit card provided by Customer for the amounts owed for Supplementary Services during the term thereof.

2.5 All taxes levied on the transactions of Service Fees under this Agreement in accordance with the applicable legislation of Customer鈥檚 jurisdiction are not included in the Service fee as well as the transaction costs (e.g. bank fees for the transaction). Such taxes and transaction costs are calculated and paid by the Customer in excess of the Service fee by the Customer. Smartcat is not responsible for any of the Customer鈥檚 taxes and transaction costs.

3. TERM AND TERMINATION

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3.1 Term; Renewal.
(a) Unless earlier terminated as set forth below, this Agreement commences on the Effective Date and shall continue for a term of twelve (12) months. Upon expiration of this initial term, this Agreement will automatically renew for additional twelve (12) month terms successively.
(b) Customer may terminate this Agreement in part of Translation services at any time upon 30 calendar days advance written notice to Smartcat. Conditions of termination of this Agreement in part of Supplementary Services are indicated in the Annexes.
(c) Notwithstanding the foregoing, this Agreement may not be terminated pursuant to this Section 3.1 in the event that there are any Service Tasks that will not have been completed as of the date of such termination.
(d) Smartcat may terminate the Platform TOS (as defined above) on the grounds specified in Section 4 of TOS.

3.2 Effect of Termination.
(a) In the event of termination of this Agreement for breach by Smartcat, Customer shall only be responsible for payment to Smartcat of the undisputed fees for Translation Services performed and fees for Supplementary Services mentioned in the Annexes through the date of such termination.
(b) In the event of termination of this Agreement pursuant to Section 3.1(a) for breach by Customer, including, without limitation, for failure to pay the invoiced fees for Translation Services, Section 5 hereof shall be considered null and void, and Smartcat shall retain the rights to all translations that have not been paid for by Customer.
(c) In the event of termination of any Service Task by Customer prior to its completion, in the absence of breach by Smartcat, Customer will be required to pay for the Services actually provided till the date of termination.
(d) In the event of termination of the Supplementary Services specified in the Annexes prior to completion in the absence of breach by Smartcat, Customer will be required to pay for the full Service period specified in the Annexes.
(e) Notwithstanding anything to the contrary herein, Customer will not be entitled to a refund of any fees related to accepted Translation Services or Supplementary Services that have already been performed by Smartcat as of the termination date of this Agreement, any Service Task or Annex.

3.3 Survival. With the exception of those provisions which by their terms remain in effect only during the term of this Agreement, and subject to Section 3.2 (Effect of Termination), all provisions of this Agreement will survive any termination of this Agreement.

4. CONFIDENTIALITY AND NON-DISCLOSURE

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4.1 Restrictions. Smartcat acknowledges that, in order to perform the Services, it shall be necessary for Customer to disclose to Smartcat certain Confidential Information (defined below) of Customer. Smartcat agrees that it shall not disclose, transfer, use, copy, or allow access to any such Confidential Information to any third-parties, except as authorized by Customer. Customer hereby authorizes Smartcat to provide Confidential Information to Suppliers (including those located in jurisdictions without adequate protection of personal data), CRM systems (i.e. Hubspot, Fullstory, Grafana) or email marketing services providers (i.e. AppCues) and similar providers to them as well as to infrastructure and development service providers, on the terms established by Smartcat, provided that Smartcat shall implement technical and organizational security measures in respect of processing of such data.

4.2 Definition. Information disclosed by Customer, including, but not limited to, information contained in the Customer Materials, information that relates to existing and future products or services, designs, business plans, business opportunities, finances, research, development, know-how, personnel, personal data or third-party confidential information, and any information which, by its nature, a reasonable person receiving such information would know or suspect is non-public, confidential, sensitive, or proprietary will be considered and referred to collectively in this Agreement as 鈥淐onfidential Information.鈥 Confidential Information, however, does not include information that: (a) is now or subsequently becomes generally available to the public through no fault or breach by Smartcat; (b) Smartcat can demonstrate to have rightfully had in its possession prior to disclosure by Customer; or (c) Smartcat rightfully obtains from a third-party who has the right to transfer or disclose it.

4.3 Smartcat Proprietary Information. Customer shall treat as confidential and agrees not to disclose to any third-party without the prior written consent of Smartcat, any information learned by Customer within the scope of the Services relationship with Smartcat that would appear to a reasonable person to be confidential or proprietary. Names and rates of Suppliers will be considered confidential information of Smartcat pursuant hereto.

4.4 Personal Data. The Parties shall comply with the terms of Smartcat鈥檚 Data Processing Agreement located at https://www.smartcat.com/dpa/ (the 鈥淒ata Processing Agreement鈥) to the extent that the Services require personal data processing by the Parties.

5. ASSIGNMENT OF TRANSLATED WORKS

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5.1 Assignment by Smartcat. Subject to payment by Customer of the fees for the Translation Services as set forth in Section 2 hereof, Smartcat hereby does and will irrevocably assign to Customer all of Smartcat鈥檚 right, title and interest in and to any and all Translated Works.

5.2 Assignment by Suppliers. Smartcat covenants, represents and warrants that each Supplier who performs Translation Services under this Agreement has or will have a written agreement with Smartcat that provides Smartcat with all necessary rights to fulfill its obligations under this Agreement, including but not limited to the obligations of this Section 5.

6. NON INFRINGEMENT WARRANTY AND INDEMNIFICATION

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6.1 Customer Warranty. Customer warrants that it is the lawful owner of Customer Materials, that such Customer Materials have been lawfully developed or acquired by Customer, and that use of such Customer Materials will not infringe on any third-party intellectual property.

6.2 Indemnification. Customer agrees to indemnify and hold Smartcat harmless from any and all losses, claims, damages, expenses or liabilities (including reasonable attorneys鈥 fees) which Smartcat may incur based on Customer Materials.

7. DISCLAIMERS

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7.1 General. THE SERVICES ARE PROVIDED ON AN 鈥淎S IS鈥 BASIS. TO THE MAXIMUM EXTENT PERMITTED BY LAW, SMARTCAT DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES EXPRESS OR IMPLIED, WITH RESPECT TO ANY INFORMATION, SERVICES, PRODUCTS, AND MATERIALS, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, FREEDOM FROM COMPUTER VIRUS, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE. SMARTCAT IS NOT RESPONSIBLE FOR TYPOGRAPHICAL ERRORS REGARDLESS OF SOURCE.

7.2 Third-Party Services. All Translation Services pursuant to this Agreement will be performed by Suppliers of Smartcat.

8. LIMITATION OF LIABILITY

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8.1 No Indirect Damages. In no event will Smartcat be liable to Customer for consequential, incidental, indirect, punitive or special damages, or loss of profits, data, business or goodwill, regardless of whether such liability is based on breach of contract, tort, strict liability, breach of warranties, failure of essential purpose, or otherwise, and even if advised of the likelihood of such damages. Smartcat shall not bear any responsibility for changes made to any Translated Works following delivery thereof by Smartcat to Customer.

8.2 Limitation Cap.
a) Any and all liabilities of Smartcat resulting from the Translation Services under this Agreement are, without exception, limited to and at a maximum equal to the lesser of (a) $10,000, or (b) the total payments made by Customer to Smartcat hereunder within one (1) month immediately preceding any such claim.
b) Any and all liabilities of Smartcat resulting from the Supplementary Services under this Agreement are, without exception, limited to and at a maximum equal to the greater of (a) $10,000, or (b) the total payments made by Customer to Smartcat for the Supplementary Services within one (1) month immediately preceding any such claim.

It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, unless otherwise prohibited by law. If jurisdiction of the Customer has provisions specific to waiver or liability that conflict with the above then Smartact liability is limited to the smallest extent possible by law.

9. MISCELLANEOUS

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9.1 Entire Agreement. This Agreement together with any schedules, exhibits, annexes, addendums and Service Tasks appended hereto constitutes the entire agreement of the parties hereto and supersedes all oral and written agreements and understandings made or entered into by the parties hereto prior to the date hereof. The process of amendment of the Terms of Services mentioned in par. 1.5. is described in the Terms of Services.

9.2 Severability. Should any provision of this Agreement be determined to be void, invalid, unenforceable or illegal for whatever reason, such provision(s) shall be null and void; provided, however, that the remaining provisions of this Agreement shall be unaffected thereby and shall continue to be valid and enforceable.

9.3 Amendments; Waiver. No amendment, change or modification of this Agreement shall be valid unless it is made in writing and signed by both parties hereto, and any waiver of a failure to perform or a breach shall not operate to waive any subsequent failure to perform or breach.

9.4 Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with and shall be governed by the laws of the State of Massachusetts applicable to agreements entered into and to be wholly performed therein without regard to conflict of law principles that would result in the application of any law other than the law of the State of Massachusetts.

9.5 Arbitration. Any unresolved controversy or claim arising out of or relating to this Agreement shall be submitted to arbitration by one arbitrator mutually agreed upon by the parties, and if no agreement can be reached within thirty (30) days after names of potential arbitrators have been proposed by the American Arbitration Association (the 鈥淎AA鈥), then by one arbitrator having reasonable experience in commercial transactions of the type provided for in this Agreement and who is chosen by the AAA. The arbitration shall take place in Boston, Massachusetts, in accordance with the AAA rules then in effect, and judgment upon any award rendered in such arbitration will be binding and may be entered in any court having jurisdiction thereof. There shall be limited discovery prior to the arbitration hearing as follows: (a) exchange of witness lists and copies of documentary evidence and documents relating to or arising out of the issues to be arbitrated, (b) depositions of all party witnesses, and (c) such other depositions as may be allowed by the arbitrators upon a showing of good cause. Depositions shall be conducted in accordance with the Massachusetts Code of Civil Procedure, the arbitrator shall be required to provide in writing to the parties the basis for the award or order of such arbitrator, and a court reporter shall record all hearings, with such record constituting the official transcript of such proceedings.

9.6 Notices. All notices required or permitted under this Agreement shall be in writing addressed to the respective parties at their addresses set forth in the signature page hereto, unless another address shall have been designated, and shall be delivered by hand or by registered or certified mail, postage prepaid or by electronic mail with confirmation of receipt.

9.7 Force Majeure. Smartcat shall not be liable to Customer for any failure or delay caused by events beyond Smartcat鈥檚 control including, without limitation, Customer鈥檚 failure to furnish necessary information, sabotage, failure or delays in transportation or communication, failures or substitutions of equipment, labor disputes, accidents, shortages of labor, fuel, raw materials or equipment, or technical failures.

9.8 Presumption. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against either of the parties.

9.9 Attorneys鈥 Fees. In the event of any dispute with respect to this Agreement, the prevailing party shall be entitled to reasonable attorneys鈥 fees and other costs and expenses incurred in resolving such dispute.