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Software companies are increasingly relying on business partners to support their core functions:  sales, service, development and marketing (see diagram below). 
These business relationships, or alliances, need to be supported by a sound legal framework that protects the company while providing the business with sufficient flexibility to execute.

Software Strategies can help establish all of the elements of this legal framework.  We provide legal and consulting services to:

  • Structure corporate business partner relationships to deliver value
  • Align business partner agreements and corporate strategy
  • Create a legal infrastructure for your partner/channel programs
  • Limit potential liability exposure inherent in business partner agreements

Review of Existing Business Partner Agreements

  • Identifying any potential revenue recognition issues – e.g., clauses that may require delaying recognition of revenue received via the alliance
  • Identifying any risks of violating the Foreign Corrupt Practices Act – e.g., agency relationship and lack of controls on alliance partner behavior
  • Determining whether the software vendor’s intellectual property rights are adequately protected
  • Assessing compliance with existing contract provisions and commitments
  • Detecting any “red flags” with respect to potential software vendor liability, warranty obligations, license grants, etc.
  • Determining what rights and remedies are available to the software vendor
  • Revising existing alliance agreements and alliance templates as appropriate to reflect best business practices
  • Advising regarding proper corporate governance of business partner relationships and compliance with the Sarbanes-Oxley Act. 

Creation of New Business Partner Agreements

  • Selection of, and due diligence criteria for identifying, new business partners 
  • Formulation of business partner metrics to measure desired performance
  • Negotiation of new business partner agreements (see sample checklist).
  • Training of key resources in negotiating agreements

    • Clauses to include and avoid
    • Defining compensation schemes
    • Limiting liability

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Software Strategies -
Alliance Checklist

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Software Strategies creates value for Software Companies via Profitable Strategic Alliances by Planning, Negotiating and Monitoring Global Alliances