Software Reseller Agreement


Here is a Software Reseller template. Here are some business issues to think about, with a lot depending on your basic customer pricing model:

- How does the reseller arrangement interplay with your intellectual property program? This is crucial if you rely on trade secrecy.

- Who provides what levels of support to end users?

- What is the revenue split? How does that apply to revenues received after termination?

- How does termination work, in detail? This is THE most critical part of the deal, and often the most overlooked by business people focused on the deal. It determines how much bargaining power you have in the relationship. For example, who holds the information about the customer?

- What budgetary obligations (e.g., for marketing) does each side have?

- What branding rights does each party have? Can the reseller private label it?

- What forms of exclusivity will be involved? Can you deal with other resellers? Do they have all the rights to implementation services? What happens to client relationships post-termination?

- Who sets prices? How do you handle channel conflict? Especially if you have multiple resellers, there can be anti-trust considerations there.

- What territories are affected? What happens when they need international capabilities to address their clients, and you don't want to build them?

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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