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Best Practices for Technology Development and Sourcing Transactions

  • Best Practices for Technology Development and Sourcing Transactions-

    Unwinding a joint venture established without serious advance exit planning is a particularly sticky affair. Ownership of IP and other assets must be allocated, customer relationships must be managed and assigned between the splitting joint venturers, and enduring liabilities and litigation must be managed and allocated appropriately, just for starters. Any party considering a joint venture should engage in serious and detailed advance planning for dispute resolution and termination options, including associated exit rights and transition support obligations.

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Best Practices for Technology Development and Sourcing Transactions

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  • Best Practices for Technology Development and Sourcing Transactions-9

    Unwinding a joint venture established without serious advance exit planning is a particularly sticky affair. Ownership of IP and other assets must be allocated, customer relationships must be managed and assigned between the splitting joint venturers, and enduring liabilities and litigation must be managed and allocated appropriately, just for starters. Any party considering a joint venture should engage in serious and detailed advance planning for dispute resolution and termination options, including associated exit rights and transition support obligations.

In recent years, the pace of technology and business change has rapidly increased, requiring new commercial models and changes to the existing models. Companies – all companies, not just technology companies – must now regularly update technology across their entire organizations and customer-facing services and products.

Successful technology projects boost revenues, distinguish a company and its offerings from the competition, and transform and improve a company’s relationships with its customers. Failure, on the other hand, can have a profound impact on product development, customer service and market reputation for years to come. Consequently, planning for technology innovation and deployment projects requires careful mapping of strategic objectives, deliverables, and realistic work-around options. 

Laurence Jacobs and Nicholas Smith, partners at Milbank, Tweed, Hadley & McCloy, have identified a variety of transaction structures that companies can use to develop new technologies and to leverage existing infrastructure, technologies, and customer bases. They have also focused on the relative strengths and weaknesses of these models in fostering technology innovation and best practices when designing and managing a project to develop and deploy technology or technology services.