Symbian was established for the purpose of developing an operating system for use in wireless information devices (a combined palm top computer and mobile phone) and then licensing it to manufacturers. Take Symbian - the joint venture between Ericsson-Nokia-Psion - as an example. This enables transactions to happen which otherwise might not. The first is the ability to combine expertise and resources. These general aims are evident in joint ventures created in all industries, and not just the communications and technology industry. Counsel must therefore create a win-win-win situation.Īlthough the ultimate aims of joint ventures vary from case to case, the general aims of most joint ventures tend to be similar. The joint venture itself must also win from the collaboration. Indeed, to create a successful joint venture, it is insufficient to just create a win-win situation for the joint venture partners. What is more, he will need to know the particular market and the prospective business of the joint venture so that he can understand how the joint venture itself can win from the collaboration. To achieve a win-win situation, corporate counsel will need to know what are the aims and ambitions of the joint venture partners. Goals For and Impetus Behind Joint Venturesīefore examining the negotiation process step by step, it is helpful by way of background to look at the aims and ambitions of parties entering into joint ventures in general and in the communications and technology industry in particular. The statistics show that only 50% of all joint ventures succeed, the average life of a joint venture is about seven years, and most face serious management or financial problems in their first two years.1 Accordingly, when advising on a joint venture, the role of a lawyer is to help create a joint venture that is more likely to succeed than not by advising on the mechanisms required to run the business and deal with conflicts and, where conflicts cannot be resolved, the mechanisms for terminating the joint venture and determining who gets what.Ģ. There is no way to guarantee a win-win situation. Although the title refers to the creation of "Solutions to Guarantee a Win-Win Situation" this is somewhat misleading. This article examines the crucial role that lawyers are required to play in the negotiation and structuring of joint ventures to ensure that they are successful and long-lasting. Joint ventures have, in the communications and technology industry (just as with other industries), become an increasingly important medium through which companies undertake significant business activities and projects. Article by Stephanie Liston and Hamid Rashidmanesh
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