![Page 1: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/1.jpg)
1
Welcome to Technology Contracts and Negotiations!
Prof. William Reilly
Spring 2012
![Page 2: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/2.jpg)
Goal of the Course
The goal of this course is to give you "Day 1" practical skills and strategies to:
• understand the substantive contract law as practiced in the "Valley",
• learn necessary technical skills to "redline"
• learn the techniques used to negotiate a variety of technology contracts from top to bottom.
Supplemental Materials:
http://techcontracts.yolasite.com/
2
![Page 3: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/3.jpg)
3
Tech Contract Experience
![Page 4: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/4.jpg)
Course
Final (takehome): 30%
Redline an agreement and email it within certain time period
Mid-Term (takehome) 20%
Class Participation: 30%
Discussion contribution
Mock negotiations
Homework Assignments: 20%
Email to me prior to the start of class
----------------------------------------------------------
Reading Material
Homework Assignment
In-class materials
4
![Page 5: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/5.jpg)
Components of the Course
Substantive Law
Negotiation Strategy
Procedures
Drafting Techniques
![Page 6: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/6.jpg)
6
Tech Contract Elements
Risk
Shifting
Mitigation
Expectation
Boilerplate
•Indemnification •Limitation of liability•Venue / Choice of Law•Reps / Warranties
• Term and Termination• Reps / Warranties• Exclusivity / MFN• Dispute Resolution•Insurance
• Definitions• SOW requirements• SLA• IP ownership• Pricing
• Integration Clause• Survival Clause• Anti-waiver / modifications• Compliance with law
![Page 7: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/7.jpg)
7
Redlining Protocol
General Protocol: - Never accept changes until the other side has agreed to them- Never add in content without redlining for the other party- If adding back in language you wrote that was stricken, re-type your content back into the doc while leaving track changes on- Use […] as comments:
- they are easier to follow and respond to [Bob:…][Kate:...]- they are easier to find by doing a search for “[“- you don’t have to review in horrible “bubble” mode- print outs are easier to read- it is easier to direct comments to specific people: [Nate:…] or [Yelp engineering:…]
![Page 8: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/8.jpg)
8
Formal Structure of a Tech Contract
Framing Language
Business Points
Risk Points
Boilerplate
Exhibits, etc..
![Page 9: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/9.jpg)
9
Structure of a Tech Contract
Framing language (non-Bx section that provides references to interpret the Points) Introduction
Parties, address, state of inc, Effective date
Recitals Definitions Closing statement Signature blocks
![Page 10: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/10.jpg)
10
Structure of a Tech Contract
Business Points (list of business objectives and rules that can cause Bx.) License / operative purpose of agreement Obligations of the parties Payment terms Marketing / logo use Term / termination
![Page 11: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/11.jpg)
11
Structure of a Tech Contract
Risk Points (allocation of risks and ownership - Bx sections) IP Representations and warranties Limitation of liability Indemnification
![Page 12: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/12.jpg)
12
Structure of a Tech Contract
Boilerplate Language (important interpretation and rules for the relationship)
Choice of Law Arbitration Force Majeure Integration Assignment Surviving Sections Notice Modifications Waiver Etc…
![Page 13: 1 Welcome to Technology Contracts and Negotiations! Prof. William Reilly Spring 2012](https://reader036.vdocuments.net/reader036/viewer/2022070414/5697c00c1a28abf838cc89d6/html5/thumbnails/13.jpg)
13
Structure of a Tech Contract
Exhibits, schedule, appendices (contain technical and business details that drive the relationship)