Technology Companies Mistakes

Technology Companies Mistakes

In operating closely with technology suppliers over the years, I often discover that these firms are a unit creating common mistakes that devalue the corporate, leave revenue on the table, or jeopardize their long health. thus this special article identifies the highest ten of those mistakes to assist you avoid creating them.
10. Failure to register a federal copyright for company-developed package
Your company has spent months, and perhaps years developing the next-big-thing. you are out there licensing it to customers, fighting off competitors, and attempting to maximise your revenues. What would {you do|you area unit doing} if a client was misusing your software? What if a contender was repeating components of it to use in its product? There are varied ways that to reply to those issues, however one amongst the best to thanks to strengthen your claims is to register a copyright for the package with the us Copyright workplace. Registration provides you with associate degree increased ability to possess a court forestall infringing use of your package, and a larger quantity of damages that area unit retrievable. The most effective half is that registration is comparatively simple and cheap.
9. Licensing technology too loosely
So you have landed that massive modify that massive client. you have rigorously priced the deal based mostly upon your expectations of however the client goes to use your technology – by a particular cluster inside the customer’s massive organization. you are hoping that the success of this deal can cause a larger adoption of your technology inside the remainder of the corporate, and ultimately a lot of revenue for you. sadly, you later learn that this one cluster is sharing your technology throughout the remainder of the corporate, with no extra license fees to you, and there is nothing you’ll be able to do concerning it. Why? By failing to rigorously and narrowly draw up the license grant in your agreement, you have unknowingly granted the complete company the rights to use your technology, and you’ve got left a pile of money on the table.
8. Failure to produce elaborate support and maintenance policies
Too often, once a company’s technology is prepared to be authorized , decisive the way to support the technology becomes associate degree afterthought. General and non-descriptive obligations like “providing phonephone and email support” and “providing updates” area unit invites for disagreements and lost expectations. once is phone support being offered? however quickly can you answer problems? what’s thought-about and update and what’s a replacement product that you’d charge the client separately? repeatedly, you would like your client to produce you with bound info concerning the matter before you’ll be able to diagnose and fix it. Set the acceptable expectations in your support and maintenance policies and avoid these problems within the future.
7. Not getting customers to revenant support fees
Customers wish and expect that you just are there to support your product, assist with issues, and supply them updates once you add options or fix bugs. Customers additionally expect that you just can often charge them for these services, thus why do such a large amount of technology vendors sell a product to a client and fail to structure regular and revenant support fees? normally, a technology vendor’s highest profit margins area unit complete through a support fee stream, and not within the direct license charge.
6. Inadequate non-disclosure and non-compete agreements with workers and contractors
The technology business is one amongst the foremost competitive industries within the market. Why take an opportunity losing your competitive advantage by not making certain that your holding, client lists, trade secrets, and alternative sensitive info area unit properly protected through acceptable agreements along with your workers, contractors, and vendors? Finding and exploitation some kind agreement that you just saw floating around on the web somewhere may very well build matters worse if you do not absolutely perceive the terms. Moreover, easy steps may be taken to make sure that something developed by your workers is, and remains, your company’s property.
5. freely giving holding possession too generously
Many technology firms develop custom-built technology for his or her customers, or build custom-built modifications to their existing technology on behalf of a specific client. And most customers argue that if they are paying for it, they need to possess it. however freely giving your company’s holding within these instances will forestall you from reusing it for alternative customers – effectively closing down a possible supply of revenue in the future. And plenty of times, your customers might not ought to really “own” the developments – a license right will typically do the trick.
4. exploitation to a fault broad or subjective acceptance testing
It is not uncommon or unreasonable for patrons to require to “kick the tires” of your technology before they purchase it. issues arise once the client has associate degree unreasonable expectation of what the technology is meant to realize, and either wish to withhold payment, or force you to produce additional services to satisfy that unreasonable expectation. This particularly manifests itself once a client includes acceptance testing language during a contract that isn’t tied to objective and realistic standards. though it may be a toilsome effort, taking the time to objectify these standards with the client within the contract will prevent important time down the road, and find you paid quicker.
3. giving liberal ASCII text file written agreement unleash conditions
For package developers, you recognize that your ASCII text file is that the “crown jewels” of your business. it’s the core of your technology, representing months or years of your blood, sweat, and tears. Nonetheless several package firms area unit willing to grant it away, for free, to their customers. How? By moving into a ASCII text file written agreement agreement with a client and permitting it to be discharged to them in things wherever the code still holds price for you. Many purchasers can demand the ASCII text file be discharged to them if you stop supporting the package, however the holding within the code should be employed in your alternative product or technology, effectively giving your client the tools it must duplicate your technology. Making terribly slim and specific ASCII text file unleash conditions will minimize this impact.
2. Undervaluing technology
What is your technology worth? it is a tough question, and price may be measured and determined in some ways. several new technology firms feel compelled to undercharge for his or her technology in an attempt to interrupt into the market. Though there’s actually some advantage in this, I see vendors systematically undervaluing what their technology is price, going important revenue on the table. Understanding the impact and loss to the client if they do not license your technology is that the 1st key to rating your product. Plus, under-pricing your product will produce an impact that the technology is “cheap” – not a label that may build a positive name of your company within the long-term.
1. Employing a kind license and/or services agreement that does not suit your business model.

Technology Companies Mistakes

Capturing specifically however you wish to produce your product or services to your client, allocating the risks, and making every party’s obligations and rights, isn’t a straightforward or fast method. Replicating another company’s kind agreement not solely exposes you to risks that you just might not remember of, however probably violates the opposite company’s copyright in their agreement, and raises the risks printed within the alternative points of this list. Having a custom-built agreement created for you that aligns along with your business processes, mitigates your risks, and addresses the laws that apply in your jurisdiction for your trade may be a key element in running a booming technology business.

Joanna S. Tyler

Joanna S. Tyler has designed Peacepark.us to allow guest bloggers to post their unique, interesting and informative content for peace park readers. He does blogging himself and contributes to several blogs including peacepark.us

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