Adopt an enterprise wide approach

Many benefits spring from an enterprise-wide approach that brings together contracts of all types in one repository.

Some processes-such as legal approval-are common to all types of contracts. Board, legal and finance departments are all involved on both buy side and sell side contracts.

However, some contracts do not fit neatly into either buy side or sell side frameworks. Examples include intellectual property rights and non-disclosure agreements.

A further complicating factor is that some organisations can be partners, suppliers and customers all at once. An enterprise approach allows an aggregate portfolio view of complex relations.

"We often see companies entering into technology transfer or licensing agreements on the foundation of intellectual property rights they have not registered or no longer maintain. Such negligence might lead to costly litigations or worse, turn a partner into a competitor."

Novagraaf

Leading European IP Law Firm

Risk management is an enterprise-wide exercise, and contract management must reflect this holistic perspective. What contracts do we have with Enron? What contracts need to be reviewed because they contain a clause now deemed unfair?

Finally, many contracts are crucially interdependent. Liability or warranty clauses must be compliant with professional insurance contracts. If you receive patent royalties, you must ensure that the patent is maintained in all relevant jurisdictions. There are master agreements linked to sub-agreements. Reciprocity agreements and compensated payments depend upon both parties buying the same amounts. Again, an enterprise-wide approach is the only viable means of managing all these issues.