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IP in Corporate Transactions

Joint venture IP arrangements decide who brings what, who owns what gets built, and who keeps it at the end, and we structure those terms so collaboration doesn't cost you your core technology.

Joint ventures and strategic alliances fall apart over the same thing they were built on: intellectual property. Two companies pool technology to build something neither could alone, then discover they never agreed on who owns the result. We structure the IP side of joint ventures and collaborations up front, so the partnership creates value instead of a future fight.

Defining What Each Side Brings

Contributions set the ground rules for everything that follows. We define exactly what IP each party brings to the venture, whether it's contributed outright or licensed in, and on what terms that grant survives or ends. Spelling out background IP, the scope of the license to the JV, and what each party can keep doing on its own prevents the all-too-common dispute where both sides claim the same technology was theirs to begin with.

Allocating IP Built Together

The hardest questions are about IP that doesn't exist yet. We address ownership of inventions, code, and other work created during the venture, whether the JV entity owns it, one party owns it with a license to the other, or the parties share rights. We match that allocation to who's funding the work, who needs the output, and how each party plans to use it after the collaboration, instead of defaulting to vague "jointly owned" language that satisfies no one.

Sharing Technology Safely

Real collaboration means handing your partner access to things you'd normally guard. We structure technology-sharing and know-how exchange so the venture can actually function, while fencing off each party's crown-jewel IP and competitive position. That means defined access scopes, confidentiality and use restrictions, and clear lines between what's shared for the venture and what stays proprietary, so cooperation today doesn't create a competitor tomorrow.

Planning The Breakup

Every venture ends, and the IP terms should already say how. We draft exit and termination provisions that allocate contributed IP, jointly developed IP, and licenses when the parties go their separate ways, including buyout rights, ongoing license-backs, and wind-down obligations. Settling this while everyone is still friendly is far cheaper than litigating it after the relationship sours, and it keeps a failed venture from taking your technology down with it.

Frequently asked questions

It is whatever the parties agree to up front. The IP can be owned by the JV entity itself, by the party that developed it, or shared between the parties. The right choice depends on what the venture is for and what each side wants out of it, so settle it in the JV agreement rather than letting it default.

Contribute your core IP under a limited license tied to confidentiality obligations, instead of transferring it outright, and keep a clear line between what you brought in and what the JV develops. Where possible, keep your crown-jewel technology out of the venture entirely. The structure should let you walk away with what you came in with.

The exit provisions should say so in advance, addressing whether contributed IP reverts to its owner, whether a party can buy out jointly developed IP, or whether licensing continues afterward. Plan for several exit scenarios, including the one where the partnership fails. Sorting this out at the start avoids a deadlock later.

Only as the agreement allows. Define field-of-use restrictions, any non-compete terms, and how each party may use its own contributed IP in its other business lines. Without these limits, a JV can quietly turn into a competitor using your own technology against you.

Yes. Some licenses restrict assignment or limit use to your own company and not affiliates or a separate JV entity, so contributing licensed IP could breach them. Review the terms first, because a violation here can unwind a key piece of the venture.

Valuation drives ownership percentages and how returns are split, so it matters. Common methods are looking at comparable transactions, the income the IP is expected to generate, and the cost to create or replace it. Because reasonable people disagree on these, agree on the method and inputs before tying ownership to them.

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