“Kiss of Death – Contract Provisions Entrepreneurs Should Avoid at All Costs”

Linked from Guy Kawasaki’s twitter feed. The page has full descriptions of the points below. An interesting read. It presents a compelling case for all those “Powered by…” branding that you see.

Kiss of Death – Contract Provisions Entrepreneurs Should Avoid at All Costs | infoChachkie
Kiss of Death Provisions

The allure to of a company-changing deal with a BDC is strong. Big companies make a number of seductive promises, including access to large markets, significant financial resources and vital public validation of your solution see Pulp Facts. However, fight the urge to close such enticing deals on the BDC’s terms. Stand your ground and negotiate a fair agreement, even if it takes longer and forces you to expend more energy than you would prefer.

To this end, never agree to any of the following Kiss of Death Provisions when negotiating with a BDC, no matter how lucrative the potential relationship:

Allow the Other Side to Draft the Agreement
Deploy a Free Pilot
Cut a Multi-year Agreement
Lock Down the Escape Hatches
Give up Branding
Relinquish Press Release Capabilities
Approve Unilateral Provisions
Accept Unlimited Liability
Forgo Change of Control or Agree to a ROFO or ROFR
Serve up World-wide Distribution
Relinquish Joint Intellectual Property Rights
Execute an Ambiguous Statement of Work
Agree to Bundling Without a Minimum Price
Grant Most Favored Nations Status
Issue Unmitigated Exclusivity