The parties should focus not only on appropriately dividing the allocation of risk, but also on the costs and expenses covered by the indemnification and who controls any proceedings involving third-party claims. It is also important to consider whether it is appropriate to cap the liability, and if so, under what circumstances. Additionally, some of the liabilities may be insurable. Accordingly, the parties ought to consider obtaining or requiring specific coverage. In summary .
Strategic alliances promise significant growth opportunities for Internet businesses.
Alliances need to be negotiated not only quickly, but with appropriate care. Alliances need to be structured and documented so that both parties achieve their goals while protecting their proprietary rights and allocating appropriately the benefits and risks. All rights reserved.