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Collaborative Networks  Adrian O’Connell   Partner  Tughans Solicitors
Introduction <ul><ul><li>Why Collaborate? </li></ul></ul><ul><ul><li>When to Collaborate? </li></ul></ul><ul><ul><li>Gener...
Possible Forms <ul><ul><li>Collaboration by Company  </li></ul></ul><ul><ul><li>Collaboration by Contract </li></ul></ul><...
Incorporated -v- Unincorporated <ul><ul><li>Incorporated - assets/liabilities; profits/losses  </li></ul></ul><ul><ul><li>...
Issues Steering Choice <ul><ul><li>Profit/Loss </li></ul></ul><ul><ul><li>Risk </li></ul></ul><ul><ul><li>Management Struc...
Collaboration by Company <ul><ul><li>Document Structure </li></ul></ul><ul><ul><li>Formalities </li></ul></ul><ul><ul><li>...
Collaboration by Contract <ul><ul><li>Types of Agreement </li></ul></ul><ul><ul><li>Deal Terms </li></ul></ul>
Deal Terms – General Contract <ul><ul><li>Duration </li></ul></ul><ul><ul><li>Inputs </li></ul></ul><ul><ul><li>Exclusivit...
Deal Terms - Technology Contracts <ul><ul><li>IP Ownership/Licensing  </li></ul></ul><ul><ul><li>Extent of Licence </li></...
Deal Terms - Competition Law   <ul><ul><li>Exclusivity  </li></ul></ul><ul><ul><li>Non-compete  </li></ul></ul><ul><ul><li...
Partnership <ul><ul><li>Relevance? </li></ul></ul><ul><ul><li>Partnership Act 1890 </li></ul></ul><ul><ul><li>Liability – ...
Conclusion   <ul><ul><li>An art, not a science  </li></ul></ul><ul><ul><li>The sum of the whole  </li></ul></ul>
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Collaborative networks may 2010

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Collaborative Networks are increasingly viewed by business, and encouraged by government, as a means of pooling resources, sharing risk and maintaining edge. Get it right and a Collaborative Network will deliver value to the participant and add value to the proposition - the sum of the whole - but what are the options for a business considering participation in such a Collaborative Network?

In this workshop, we will examine the legals behind structuring and managing such a Collaborative Network, be that collaboration by means of contract, partnership or a special purpose company.

Published in: Technology
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Collaborative networks may 2010

  1. 1. Collaborative Networks Adrian O’Connell Partner Tughans Solicitors
  2. 2. Introduction <ul><ul><li>Why Collaborate? </li></ul></ul><ul><ul><li>When to Collaborate? </li></ul></ul><ul><ul><li>General Legal Considerations </li></ul></ul><ul><ul><li>Challenge: Plan and Document </li></ul></ul><ul><ul><li>Balance: Reward -v- Control </li></ul></ul><ul><ul><li>Degrees of Integration Depending on Form </li></ul></ul>
  3. 3. Possible Forms <ul><ul><li>Collaboration by Company </li></ul></ul><ul><ul><li>Collaboration by Contract </li></ul></ul><ul><ul><li>Partnership - by design or default </li></ul></ul>
  4. 4. Incorporated -v- Unincorporated <ul><ul><li>Incorporated - assets/liabilities; profits/losses </li></ul></ul><ul><ul><li>Unincorporated - pooling of assets; revenue share </li></ul></ul><ul><ul><li>Tax considerations may drive structure </li></ul></ul>
  5. 5. Issues Steering Choice <ul><ul><li>Profit/Loss </li></ul></ul><ul><ul><li>Risk </li></ul></ul><ul><ul><li>Management Structure </li></ul></ul><ul><ul><li>Control/Minority Protection </li></ul></ul><ul><ul><li>Changes in Participation </li></ul></ul><ul><ul><li>Regulatory </li></ul></ul><ul><ul><li>Termination </li></ul></ul>
  6. 6. Collaboration by Company <ul><ul><li>Document Structure </li></ul></ul><ul><ul><li>Formalities </li></ul></ul><ul><ul><li>Limited Liability </li></ul></ul><ul><ul><li>Directors’ Duties </li></ul></ul><ul><ul><li>Transfer of Assets </li></ul></ul><ul><ul><li>Termination/Exit </li></ul></ul>
  7. 7. Collaboration by Contract <ul><ul><li>Types of Agreement </li></ul></ul><ul><ul><li>Deal Terms </li></ul></ul>
  8. 8. Deal Terms – General Contract <ul><ul><li>Duration </li></ul></ul><ul><ul><li>Inputs </li></ul></ul><ul><ul><li>Exclusivity & Non-compete </li></ul></ul><ul><ul><li>Royalties/Payments </li></ul></ul><ul><ul><li>Limitation of Liability </li></ul></ul><ul><ul><li>Warranties </li></ul></ul><ul><ul><li>Termination </li></ul></ul><ul><ul><li>Reporting & Review Structures </li></ul></ul><ul><ul><li>Confidentiality </li></ul></ul><ul><ul><li>Non-Solicitation of Employees </li></ul></ul><ul><ul><li>Governing Law </li></ul></ul>
  9. 9. Deal Terms - Technology Contracts <ul><ul><li>IP Ownership/Licensing </li></ul></ul><ul><ul><li>Extent of Licence </li></ul></ul><ul><ul><li>IP Infringement Indemnity </li></ul></ul><ul><ul><li>Development/Source Code Access </li></ul></ul><ul><ul><li>Implementation & Acceptance </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Upgrades/New Releases </li></ul></ul><ul><ul><li>Support & Maintenance </li></ul></ul><ul><ul><li>Source Code Escrow </li></ul></ul>
  10. 10. Deal Terms - Competition Law <ul><ul><li>Exclusivity </li></ul></ul><ul><ul><li>Non-compete </li></ul></ul><ul><ul><li>Price Maintenance </li></ul></ul>
  11. 11. Partnership <ul><ul><li>Relevance? </li></ul></ul><ul><ul><li>Partnership Act 1890 </li></ul></ul><ul><ul><li>Liability – Joint & Several </li></ul></ul>
  12. 12. Conclusion <ul><ul><li>An art, not a science </li></ul></ul><ul><ul><li>The sum of the whole </li></ul></ul>

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