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Contract Question: Getting a Piece of the Action

by rgramly
1 replies
Contract Question: Getting a Piece of the Action
When you develop an IM system for someone else (e.g., for hire as a consultant), how would you structure the contract so that you get a piece of the action when it starts to make money. The client hasn't done IM in the past and doesn't understand the potential. They probably wouldn't continue without the support/know-how of my company. But I need them too; without their content and cooperation the initiative can't continue. Has anyone had experience structuring a JV with a client? Can anyone recommend an attorney who is IM savvy?
Thanks,
Rob
#action #contract #piece #question
  • Profile picture of the author JohnMcCabe
    Rob, one idea lies in the old SALT treaties - "Trust, but Verify."

    You can include language specifying that in the event there is a disagreement over performance, your partner gives you the right to inspect their books and/or company tax returns. Any audit or review would be at your own expense.

    If the business structure lends itself, you could also have them set you up as a master distributor, getting an override on all internet sales.

    I don't think you need an attorney with an IM specialty, just a one that's good at writing B2B contracts.
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