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When you think about Louis Vuitton, do you think of a fashion company or a tech company? When you pose the same question about food delivery company Blue Apron, do you see a fresh food provider or a tech company? The question over this distinction is becoming ever more common as more companies want to establish a footprint in the digital marketplace.
Innovation is the lifeblood of a business, so it is not surprising that traditional brick and mortar companies see relationships with tech companies as the next logical step in their development.
After all, retail giant Amazon was viewed purely as a bookseller in its infancy, but as the company evolved and learned the intricacies of the online merchandising, it has completely rebranded itself as a top tech company.
Because of this, firms in nearly every industry are looking to tech companies (particularly startups) for their expertise. The success of these relationships depends on several agreements, including non-disclosure agreements, partnership agreements and development agreements.
These agreements specify the intent each party has in coming together to develop a particular competency and outline the legal implications of violating or ending the partnership. Knowing the intent and boundaries can help in avoiding infringement actions and other disagreements down the road that could potentially lead to legal action.
So while a retail company’s new venture with a tech company may seem rosy and profitable at the outset, carefully drafted agreements can protect the company in the event something goes awry. If you have questions about how an experienced business law attorney can help, we invite you to contact us.