3 legal tips for your startup's collaborations
So you have found the perfect business partner for your startup, what should you do now ? Below are our 3 tips for your startup's collaborations.
The term collaborate means to work with someone to produce something.
First, you can prepare a summary of the key terms on the 'something' you will create. If you are not comfortable with this, your respective lawyers can also do this for you. The summary terms are sometimes called a term sheet or a memorandum of understanding (MOU).
An MOU is not usually meant to be legally binding.
The collaboration agreement comes after the term sheet or MOU and includes the key terms you have negotiated.
Unlike the term sheet or MOU, a collaboration agreement is binding. Also, this agreement will help you come back to what's important if there is a dispute.
What's included? Key terms like:
You should consider if you will share resources with your collaborator. Do your agreements change as a result ?:
It's a good idea to think about your exit strategy from the start.To allow flexibility for an exit, it is a good idea to cover: