In today’s world, companies big and small outsource everything. Not only are their call centers in India, but various functions that used to be handled in-house are farmed out to consultants whether it be market research, product design and development, software implementation, employee benefit plan administration or any other service you can think of.
If you represent consulting firms or other high-end service providers to the corporate market, a common scenario often plays out: your client is thrilled to win a lucrative project for a big-name customer after an arduous RFP process only to find itself being asked to sign a very one-sided services contract drafted by in-house counsel. The intellectual property provisions are a disaster for your client and could limit its ability to bid for and perform future work especially in the new customer’s industry. Your job is to help them negotiate those sections so that they treat the consultant fairly or at the very least aren’t harmful to the consultant’s business. This article describes some of the most common problematic IP provisions in consulting contracts and suggests some possible approaches.
