Many Technology businesses are created through people and businesses that know each other and work together, especially young companies or start-ups. More specifically, many businesses have multiple partners, investors and inventors. As time evolves there is often a need or desire to change the original relationship. The reasons for the change will be factors in determining the type and terms of the new agreement to be drawn.

After it has been determined that the parties wish to depart or have other interests which the parties may wish to pursue, in Technology Corporations, it is all too common that there will be a squabble over Intellectual Property issues.

However, Parting does not have to be sorrow, it can be sweet.

It isn't uncommon that the parties may want to work together or form some sort of a joint-venture/piggy back arrangement. With a creative arrangement, it is more likely that if the parties are willing to work together, not only will both parties leave the working relationship with each other in a well compensated or at least amicable relationship, but all parties may be able to offer their clients and customers more and better services.

The elements in these changes in ownership require an in depth understanding of not just the corporate issues, but also the technology and Intellectual Property (IP) issues. Some of the elements will be similar for each type of contract. Others will differ depending on their identifying nature (Buyout, Change in Ownership of the Business, etc).

In all modifications of Agreements a proper place to start is with the original contracts that formed the business relationship. Legal clauses are “terms of art.” It’s best to be consistent from document to document.

In the rest of this article, I will analyze a few examples of different elements and points for consideration in Technology Modification Agreements. More detailed articles will follow on each type. The examples are not meant to be exhaustive: