Co-Branding Agreement
Co-branding is a
means for two parties to team up on the web to maximize
revenues. A co-branding agreement lays out the terms of
their relationship and keeps a good thing from becoming
a disaster.
A co-branding agreement is somewhat akin to
a strategic alliance. Two parties agree to work
together on a project to produce revenues that are then
split per an agreed upon formula. The difference is
typically that one party simply creates a page touting
their goods for the other's site.
The "mixing" of properties on a site has
major legal ramifications. Who will have final say on
the page appearance? Will trademarks and copyright be
allowed to be used? What about sharing of customer
data? Who will host the page? Who will deal with
customer service? What if there are chargebacks? The
issues are not as extensive as with a strategic
alliance, but they must be dealt with by the parties.
As you can probably guess, a co-branding
agreement is used to put the agreement between the
parties in writing. There is no standard agreement
because every deal is different. That being said, there
are some common components including answers to the
questions in the previous paragraph.
Do you really need a co-branding agreement?
Absolutely. Let's assume you work a deal with a bigger
site wherein they will build a page for your product
and push it. After your page has been up for a week,
you realize that they are sending out spam to drive
traffic to their site in violation of the CAN-SPAM Act.
You tell them to cease and desist, but they refuse. You
demand they pull your page, but they refuse to take it
down and tell you they will sue if you don't fulfill
the orders. If you don't have an agreement in writing,
you are going to end up in one big court battle. I
doubt that would please you.
The concept of co-branding is fairly popular
on the web as it is a good way to produce positive
revenues. Contact me today at 619-637-6043 to learn
more about getting an agreement in place.
Richard A. Chapo, Esq.


