By Robert A. Adelson, Esq.

• Merits of Strategic Alliances 
• Channel & marketing power
• Credibility, Brand
• Value added for customers
• Complimentary skills
• Access to technology
• Scale up / time to market
• Alternative capital source
• Obstacles -Risks
• Loss of independence
• Divergence of partners

• Partnership Planning  
• Purpose and Goals
• Type of transactions
  • OEM, VAR, SI, Co-marketing
  • Target markets
    • Vertical, Horizontal,
    • Customers
    • Teaming /subcontracting
  • Separate shared entity
  • Equity investment
  • Operational Goals and Milestones
  • Decision Making

• Partnership Implementation and Life Cycle Stages 
• Partner recruitment
• Letter of intent
• Due diligence
• Definitive arguments
• Nurturing the alliances
• Dispute resolution
• Termination

• Research and Development Collaboration
• Project Management & control
• Development Milestones
• Licensing existing IP
• Treatment of new IP
• Payment
• Exclusivity
• Restrictive covenants

• Licensing for Marketing and Sales          
• Territory: Customers, market, geographic division
• Exclusive or Non-Exclusive
• Relationship/Statutory Requirements
• Sales levels: Minimum, inventory, staffing, best efforts, loss of exclusivity
• Pricing: Discounts, volume discounts
• Credit terms
• Product Availability and Allocation
• Marketing and Promotional Arrangements
• Order Entry
• Sales Contract Terms
• Termination: Return Buyer’s Property: information, trade secrets, tools, equipment, materials, no use of trademarks
• Miscellaneous: Assignment, change orders, integration, arbitration, attorney fees, jurisdiction

• Subcontracting / Teaming Arrangements
• Services
• Warranties/Indemnity
• IP ownership
• Confidentiality
• Restrictive Covenants
• Termination
• Governing law enforcement and self-help protection

• Alliances with Equity piece or
  Joint Venture Entity
• Contribution & valuation
• Minority protections
  • Anti-dilution
  • Liquidity / Information
  • Strategic Option rights
    • First offer for sale
    • Options over technology
    • Perception of captive company
  • Separate venture entity
    • LLC, LLP, Corporation
    • Liability, credibility
  • Management/ operation
    • Operating standards
    • Security procedures
    • Benchmarking
    • Management and control
    • Project team
    • Key personnel

• Continuing the Alliance
• Flexibility / Validation
• Champions /Good will
• Handling Deadlock
• Dispute resolution

• Disputes and Termination
• Exit plan / Buy-sell
• Termination procedures
• Residual Agreement
• Transition to successors

For more information contact: 

Robert A. Adelson, Esq.

Engel & Schultz, LLP

265 Franklin Street, Suite 1801

Boston, MA 02110

617-951-9980 x 205

radelson@engelschultz.com

www.engelschultz.com

© 2006 By Robert A. Adelson