Tag Archives: Secure

How do You Manage a Key Partner Relationship? Five Points

Situation: A company was created from IP originally developed by the founder at a large corporation that was not interested in commercializing it. The new company has now become successful and visible, with the large corporation as an important partner. The CEO wants to make sure that she has all bases covered to secure the future of the new company. How do you manage a key partner relationship?

Advice from the CEOs:

  • There must be clear agreement between the company and partner on ownership of the original IP – a legal document signed by both parties. You can bet that should a conflict arise, the lawyers representing the larger company will argue that their client owns the IP. Once this is secured, focus on developing and licensing software that you clearly own.
  • Develop contingency plans should the key partner decide to exit the business on which your relationship is based. Identify what other companies could replace lost revenue. Start to build these relationships.
  • If the partner helps to fund current development, take the money that you save and develop your own IP, independent of the partner relationship. As an alternative, at least develop critical components of the software as your own IP, without using the partner’s funding.
    • This will free you to develop other customer segments to broaden your business base.
  • What concerns does the partner have? Strategically, large corporations can be uncomfortable if they feel dependent upon a much smaller company. There are two things that you do:
    • Makes a concerted effort to assure that you are essential to the large corporation’s overall business.
    • Make change as painful as possible.
  • How would you get paid if the large partner exited the relationship?
    • Negotiate a contract with a 2-year window to any change that partner wants to make. This will provide you with the room to develop new clientele should the partner exit.
    • Have contingency plans to rebuild capabilities that might be lost and sell it to other clients.
    • Customize your software by client. In the process, you will develop new methods to keep your edge over competitors.
    • Keep critical parts of your processes “manual” so that they are essentially trade secrets and not easily replicable if the partner were to try to take over the IP.

Should You Put Privacy Statements on a Web Site? Five Thoughts

Situation: An early stage software-as-a-service (SAAS) company notes that a number of companies have privacy statements on their web sites. Is this something that is common, and should they consider their own privacy statement on their site?

Advice from the CEOs:

  • If your services include the collection of users’ personally identifiable information many users will want to know that the information that they put on the site is secure. Get legal advice on the handling and storage of personally identifiable information. You may want to qualify for TRUSTe or a similar service.
  • Others will be competing in your space, or close to it. Look at these companies’ sites for what type of privacy statement they use.
  • Research how important this is to your target audience. Get assistance from someone who is good at drafting surveys. Hire a summer intern or local college student to conduct the survey. This is a quick way to answer your question.
  • Determine your business policy regarding privacy. If policy considerations dictate that you should have a statement, then find a model statement that you like and use this. Model a statement after one that appeals to you from another company. Make sure that you cover anything that you feel is important, and retain any prerogatives that you feel are important.
  • Create a link to a separate page that contains a model privacy statement. Count the number of clicks that it receives. You may find that nobody clicks on this.