joint venture marketing
joint venture marketing
joint venture marketing is just as it sounds, the involvement of two or more businesses or entities partnering up in order to build up a solid base of customers and to profit. It then becomes a legal organization. However, instead of a partnership being formed for the purpose of individual profits or gains, the joint venture may be formed for the intention of developing a product, marketing strategy or intellectual property (the mind’s creations such as inventions, symbols, works of art and/or name and images used in commerce). The two categories that it breaks down into are: Industrial Property (industrial designs, trademarks, geographical indications and patents for inventions) and Copyright (all literary works, musical works, films and all artistic works. Copyright also includes all involved in the artistic such as performing artists, broadcasters and producers).
A contract protects the partners of a JV marketing agreement
As with any agreement, a contract is drawn up to protect all parties involved and to lay out certain stipulations. This is effective in that each business understands their responsibility, their rights and their expected participation in the agreement. There are many points to consider when entering into a contractual agreement because whether the partnership is short or long term, there are key elements that should be enforced or included in the agreement.
Key components of a joint venture marketing contract
To protect all parties involved, key considerations often included in a Joint Venture contract are: assignment, amendments, confidentiality, dispute resolution, dissolution, governing law, indemnification and intellectual property. The contract could also include the bookkeeping and records, mission statement, bank accounts, capital contributions, division of profits and losses, place of business, management duties, expenses, term and termination and other business interests.
Each of the topics mentioned above could be a subsection in the contractual agreement between the participating joint venture partners. When the agreement is broken down into sections, you can see the legal implications and obligations that would fall into each separate category. Detailing each section legally, with mutual consent, this signed document will become a binding contract that can be upheld in a court of law if necessary. Contracts, state partnership and commercial transaction laws govern joint ventures in the United States. The partnership is also responsible for federal income tax. If foreign countries are involved in the joint venture agreement, the parties are also subject to the laws that are in place within those countries, as well as the international trade laws.
The key details of the joint venture marketing agreement
Compensation, partner shares, and income should also be determined on the agreement, so that no discrepancies will occur. When these clauses are included (whichever ones you choose from the list above) and rules or guidelines are written in each section, the joint venture marketing agreement becomes legally binding once all parties involved sign it. Business must always be separated from personal feelings and attachments. Meetings should be held between the involved parties to discuss what the expectations of each are. All parties should be involved in discussing and contributing to the terms set in the agreement.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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