Minneapolis patent attorney Mark Stignani discusses how joint ventures need to have written financial agreements.
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One of the things that is most poorly done in many joint ventures is really to understand what sort of revenue, what sort of opportunity, what sort of risks are involved in getting into a joint venture relationship. A lot of the costs are not modeled very well, the costs of interactions, the costs of medians, the costs of phone calls, and especially working across geographic differences. So one of the things that I always recommend for a joint venture is to work the finances first and assume, you know, additional factors for transferring people to a location, for moving head count around, for transferring intellectual property. A good financial model before you enter a joint venture will actually help you make a decision not to go into that joint venture or whether it makes sense or not. That is probably one of the more important things to do in joint venture rule making.