You know the drill. New business ideas, cross-sector ventures, or that all-too-rare moment when two teams genuinely want to work together. Enter the collaboration agreement. Whether you’re heading up legal at a scaling tech company, a seasoned in-house at a listed business, or somewhere in between, you’ll likely face a request to ‘just pull together something simple’ for a partnership. But as ever, there’s no such thing as ‘just’ when it comes to keeping your business protected.

Here’s your quick guide to making collaboration agreements work for your business - without the fuss, jargon or unnecessary drama.

Why bother with a collaboration agreement?

Collaboration can mean anything from sharing IP to building a joint product, but the risks (and headaches) can multiply fast if the paperwork isn’t nailed down. Here’s why you need a proper agreement:

• Clarity on roles. Avoid finger-pointing later by spelling out who does what, and when.
• Protecting IP and confidential info. No one likes surprises when their know-how walks out the door.
• Getting paid. Make sure revenue-sharing, cost splits, and payments are upfront, not an afterthought.
• Exit options. Sometimes partnerships don’t pan out. Agree upfront how either side can walk away (with dignity intact).

What to include (and what to watch out for)

You don’t need a 50-pager, but a decent collaboration agreement should always cover the basics:

• Purpose and scope. Be clear about what you’re working on together - and what’s off-limits.
• Responsibilities. Set out each party’s commitments and expected deliverables.
• IP ownership. Decide early: who owns what, what gets licensed, and what happens if new IP is created?
• Confidentiality. Standard NDA clauses often aren’t enough - tailor for your project and any sensitive data.
• Data protection. Especially where personal data is involved. Who’s the controller? What’s the plan if there’s a breach?
• Commercial terms. How are costs and profits split? What’s the payment schedule? Don’t leave the money chat to the end.
• Term and termination. How long does the agreement run? What happens if things change - or go wrong?
• Dispute resolution. Avoid court if you can - mediation or arbitration clauses can keep things amicable.

Top tips for in-house lawyers

• Get commercial buy-in early. Talk to your business teams before drafting - the devil (and the deal-breaker) is usually in the details they care about.
• Don’t over-lawyer it. Stick to what’s needed. Clear, concise, and fit for purpose will win you friends across the business.
• Plan for the end, not just the start. Most collaborations are rosy at the outset. Focus on what happens if things go off-piste.
• Watch for competition law. Some collaborations (especially with competitors) can stray into risky territory. If in doubt, check in with a specialist.

The Plume view

Collaboration can be a great way to innovate and grow - or a fast track to headaches if the basics aren’t covered. A solid, user-friendly agreement makes for a smoother partnership and fewer panicked Teams calls down the line.