Overview of a Business Collaboration Agreement

What is a Business Collaboration Agreement?

A Business Collaboration Agreement is a contract for two parties to collaborate in a business. It allows them to combine resources and expertise, such as skills, technology, IP, products, or marketing strategies.

A Business Collaboration Agreement sets out the business input of each party and how one party will pay the other for its input. This contract does not transfer any intellectual property rights, meaning that the intellectual property rights created by one party stay with that party.

This Business Collaboration Agreement is for the party collecting payment from the customers or clients.

When are collaboration agreement used?

Collaboration agreements are used by parties wanting to create a contractual joint venture. The content of a collaboration agreement will differ depending on the nature of the venture: if for example the project involves real estate then there will be specific provisions to protect the property being used in connection with the project; if the project is a tech project then there will be specific provisions to set out who owns and has responsibility for the intellectual property created in the project.

Keypoints included

  • Details of the product or services that the business will provide;
  • Input from each party;
  • Start date and duration of the collaboration;
  • Termination arrangements;
  • Invoicing and payment;
  • Details and duration of confidential information that must be protected; and
  • Post-termination restrictions.

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