Agreements form part of your company’s intangible assets and therefore represent a very high proportion of the company’s value.
If your agreements are all in order, it can give you a major competitive advantage in connection with collaborations, negotiations and buy-outs. A company that keeps a close watch on its agreements will be well-placed in negotiations and impress prospective investors.
Keeping a close watch on your agreements will entail a financial value which will often become apparent if the company is bought out.
Of particular importance for companies in the innovative digital industry are agreements with employees, consultants, publishers and collaboration partners, as well as agreements between joint owners in a company, agreements setting out conditions with users and agreements with investors.
Everyone stands to gain if agreements are clear.
Those involved will benefit from drawing up agreements for the various roles. This will ensure right from the start that it is clear who owns what as regards copyright and shares. With clear agreements, your company will have a solid foundation for innovation and creativity within your business.
For innovative developers, it is particularly important to introduce nondisclosure agreements (NDAs) in important relations and contacts, as you will often need to pitch your idea in different contexts in order for it to become reality.
Prepare your own agreements
- Write your own agreements in English, as that often is the industry’s contractual language.
- Keep all your agreements in order: list, version management, administration.
- It can be a good idea to use quality-assured standard agreements, but do not make any changes to them on your own initiative.
Sign the agreement
- Make sure you really understand the agreements you sign.
- Do not agree more than what your business is able to deliver.
- Consider the consequences in both the short and the long term: Is the agreement limited to certain countries and markets? Are the requirements reasonable with regard to your future development and that of your company? Are the time frames appropriate for you?
- Discuss the agreement with an independent legal expert before signing.