ABSTRACT
Distribution agreements are used between a manufacturer of information technology and a supplier of information technology or publisher of content to a wide base of customers. In each distribution agreement, it is essential to consider whether a license grant is necessary and, if it is, what the scope of the license grant should be. Where the manufacturer and distributor collaborate to develop the product that will ultimately be distributed, the distribution agreement will contain a detailed process and precise obligations of both parties with respect to the development. Data of customers of the distributed product can be extremely valuable to both parties to the distribution agreement. The specific obligations of the parties to a development agreement will depend entirely on the scope of the business deal. Each distribution agreement will clearly articulate who is responsible for determining the price of the product and the royalty payment to be made to the manufacturer for each product sold.
