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Third Party Data Sharing Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions for sharing data between organizations and third parties. The document ensures compliance with Indian data protection regulations, including the Digital Personal Data Protection Act 2023 and IT Act 2000, while defining the scope of data sharing, security requirements, confidentiality obligations, and liability arrangements. It includes specific provisions for data handling, breach notification procedures, and security measures required under Indian jurisdiction, making it essential for organizations engaging in data sharing activities within India's legal framework.

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What is a Third Party Data Sharing Agreement?

The Third Party Data Sharing Agreement is essential for organizations operating in India that need to share data with external parties while maintaining compliance with Indian data protection laws. This document becomes necessary when organizations need to transfer, process, or analyze data through third parties, whether for business operations, research, or service delivery. It addresses key requirements under Indian legislation, including the Digital Personal Data Protection Act 2023 and IT Rules, specifically covering aspects such as data security, privacy protection, breach notification, and cross-border data transfers. The agreement is particularly crucial given India's evolving data protection landscape and the need to establish clear accountability and security measures when sharing sensitive information with third parties.

What sections should be included in a Third Party Data Sharing Agreement?

1. Parties: Identification of all parties to the agreement, including their registered addresses and company details

2. Background: Context of the agreement, relationship between parties, and purpose of data sharing

3. Definitions: Detailed definitions of technical terms, types of data, and key concepts used throughout the agreement

4. Scope of Data Sharing: Specific details about what data will be shared, purposes of sharing, and any restrictions on use

5. Data Protection Obligations: Compliance requirements with Indian data protection laws, security measures, and safeguards

6. Rights and Responsibilities: Detailed obligations of each party regarding data handling, protection, and usage

7. Security Measures: Specific security protocols and standards required for data protection

8. Confidentiality: Obligations regarding maintaining confidentiality of shared data

9. Data Breach Procedures: Protocol for handling and reporting data breaches

10. Term and Termination: Duration of the agreement and conditions for termination

11. Post-Termination Obligations: Obligations that survive termination, including data deletion or return

12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

13. General Provisions: Standard clauses including notices, amendments, and severability

What sections are optional to include in a Third Party Data Sharing Agreement?

1. International Data Transfers: Required when data will be transferred outside India, including compliance with cross-border data transfer regulations

2. Audit Rights: Include when regular audits of data handling practices are required

3. Sub-processing: Required when either party may engage sub-processors to handle the shared data

4. Insurance Requirements: Include when specific insurance coverage for data protection is required

5. Industry-Specific Compliance: Required when data sharing involves regulated industries like healthcare or financial services

6. Data Monetization: Include when there are commercial arrangements around data usage or insights

7. Service Level Agreements: Required when specific performance metrics for data sharing need to be maintained

What schedules should be included in a Third Party Data Sharing Agreement?

1. Schedule 1 - Types of Data: Detailed categorization of data being shared, including personal and sensitive personal data

2. Schedule 2 - Technical and Security Requirements: Specific technical standards, security protocols, and implementation requirements

3. Schedule 3 - Data Processing Activities: Detailed description of allowed data processing activities and purposes

4. Schedule 4 - Contact Details and Escalation Matrix: Key contacts for operational matters and breach reporting

5. Schedule 5 - Fee Schedule: If applicable, details of any fees or costs associated with data sharing

6. Appendix A - Data Transfer Mechanisms: Technical details of how data will be transferred between parties

7. Appendix B - Compliance Checklist: Checklist of compliance requirements under Indian law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use

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