Minneapolis patent attorney Mark Stignani discusses potential challenges and problems that can arise with joint ventures.
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This is a really interesting area because it dwells upon human nature. Why do you get into a partnership in the first place? Because you have something that the other person wants or vice versa. So you always have to be cognizant of hidden agendas of your partner, ’cause they may have an agenda of becoming your competitor, or they may have hidden IP assets and they’re learning about your IP in order to circumvent your IP. So one of the biggest pitfalls of a joint venture is really how well do you trust the partnership you’re getting into, how well have you locked up that arrangement so a competitor can’t buy your partner out, or other horrible things like that that happen in your day-in-and-day-out relationship.