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venture (often abbreviated JV) is an entity formed between
two or more parties to undertake economic activity together. The parties
agree to create a new entity by both contributing equity, and they then
share in the revenues, expenses, and control of the enterprise. The
venture can be for one specific project only, or a continuing business
relationship such as the Sony Ericsson joint venture. This is in
contrast to a strategic alliance, which involves no equity stake
by the participants, and is a much less rigid arrangement.
Organizations can also form joint ventures, for example, a child welfare organization in the Midwest initiated a joint venture whose mission is to develop and service client tracking software for human service organizations. The five partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource.
The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability.
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Joint Venture Technology
Venture Internet partners are becoming a worldwide demand, especially
since the economy is down. The thought of JV is due to rapid changes in
technology standard, changeable marketing strategies, and intangible
emphasis of services.
If you are considering JV, legally plan your contracts, strategies, etc carefully, since JV can effectively provide a vehicle for transporting tech business, especially those desiring to tap into intelligent properties asset. The focus is to reach innovative ventures, or co-ventures that can contribute to the businesses worth, especially to form entities that will manage the business.
The notion then, is to arrange joint partners, enabling them to access pools of capital, IP, resources, (Intellectual Property), technical, etc. The mission of arranging partnership is to pull resources together, pull assets together while providing a method of expansion. The expansion will include business abilities, rights attained, etc, especially the rights that you may not have the entry to single-handedly.
Due to the insubstantial Intellectual Property assets, it is vital that you write a contract that identifies the transfer and retains of rights through IP, i.e. clearly pointing out the agreement in the contract.
The structure and formation of the contract should focus on various aspects. The JV contract structure and documents of governance commonly decide on goals to accomplish. The allotted for achieving these goals will also be outlined and defined in the agreement. You will also cover personal support to bringing up the companyís revenue and volume.
You will pay close attention to jurisdiction exacting taxes and laws of antitrust, while deciding the overall structure of legal nature in joint venture. In a nutshell, you will provide information in detail and superbly defined that provides information, including your operations in the JV, managerial skills, etc.
ExampleIf you are capable of marketing and your partner is capable of managing a business, you will lay out the definitions and entire overview of what you are capable of doing.
As a Joint Partner, I intend to utilize my skills and experience to the fullest, by offering marketing tools to promote (such and such) company. I will write web content with keywords in mind that will take the partners site to the top of the search engines, which will increase traffic.
Furthermore, while working as a team, my partner will expect my ability to build links and exchange links to promote the website, and increase traffic. Continuing, I will utilize my writing skills to produce 10 newsletters each month, and 10 EZINES monthly to pump up the volume in revenue and traffic to the business.
As you can see the writer points out what she will do in volume. In other words, he noted that he would provide 10 EZINES and newsletters monthly, which obviously she feels capable of handling. Now, if the writer put I will write EZINES and Newsletters monthly it leaves the doors open for the JV partner to make claims against the joining partner. Never promise more than you can give. You will set up a timetable that will help the partner see that you are working to your limits to promote the business.
For example, link building and link exchanging can take up to one week to find relevant links that connect the JV partnerís site. Thus, the timetable should comprise this information backed with additional timeframes the partner will work in other areas.
Writing articles can take as long as one day to five days, depending on the amount of articles generated. With this in mind, I will point out that the author did not include the estimated amount of articles he/she will write.
Therefore, as a JV partner to this partner, I could shoot back at the partner claiming, you promised that you would write articles to enhance the ranking of my website, yet you only sent me 20 articles the entire month. Thus, include the number of articles (if this is your purpose as a JV partner) in the contract to leave no room for objections.
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