Two companies with joint ownership of software product

Discussion in 'Growing and Managing a Business' started by Erwin Fletcher, Dec 19, 2015.

  1. Erwin Fletcher

    Erwin Fletcher
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    Dec 19, 2015
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    Looking for ideas on how two companies can have joint ownership of a software product that both developed together and where we can keep costs, liabilities separate. Basically this was an R&D product that both companies contributed to.
    My thoughts
    1.) Both companies own some percentage in the product (50/50)
    2.) One company will likely have to “administer” the product so maybe a cost/fee should be subtracted from the 50/50.
    3.) Liability should be split 50/50 between 2 companies.
    4.) Functionality already developed could be created as the “core” product. New functionality could be created by either company and it would be considered an “ADD-ON”. The company that provided the ADD-ON would get most if not all of the percentage of license fees associated with that ADD-ON. The CORE functionality would be split 50/50 (after fee).
    5.) Both companies would market the software independently. Whomever “closes” the deal would be entitled to some time of percentage of the sale. (The rest split between the CORE and ADD-ON company interests)

    Future development will be different between each company. (Possible one company has no future development/enhancements...How do we handle that?)
  2. Tedel

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    Dec 19, 2014
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    Isn't this something you should ask a lawyer, my friend?

    Still, let me give it a shot: If I were you, I would have a meeting with the owners of the two partner companies have them agree on building a new joint venture company just for this project. In the long run, it would be better that pursuing contract negotiations or agreements.

    If they do not want to create a new company for that, then lawyers should sit down, create a contract and have the two parties sit down and sign it. It is the safest option, in my opinion..

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