What is a Joint Development Agreement?
The difference between a common development project and a joint development project is as follows:
In a customer-specific development project, Micro Technic conducts the development on the basis of a requirement specification, prepared by the customer or by Micro Technic for the customer.
The resulting product is usually very specific to the customer and is therefore fully paid by the customer according to offers / estimates or after bill.
In a Joint Development project, the project is divided into three parts:
The first part is the specific part for the customer’s specification, which costs 100% of the customer’s cost.
The second part is the shared design, where costs are shared with the customer and Micro Technic
The last part is the specific part of Micro Technics specification that the customer does not pay for and therefore also has no right to.
Advantages of Joint Development
Primarily, the basic costs associated with product development could be reduced in relation to fully paid development, some of which are paid by Micro Technic A / S.
The production price should in the long run be expected to be affected by a higher component volume of the components included in both the original design and the variant product. This, of course, depends on the success of the sale of the variant product. The production price thus relates to a certain extent to the price of the variant product, which will normally be marketed at a competitive price according to a standard price list.
The original design, according to the customer’s requirement specification, may. be improved through the utilization of the ideas supplied to the product to produce the variant product. However, if all additional features or changes in functionality are introduced in the original presentation, the resulting product is considered a variant product and associated product rights for Micro Technic A / S.
Delivery time may be reduced as some components, especially the more critical ones, will normally be stocked in connection with the marketing of the variant product.
Technical service will be streamlined as support and repair technicians want continuous insight into the product.
Rights of Joint-Development
Save on development costs and benefit from Micro Technic’s competencies in electronics and software design.
In some cases, the requirement specification is a more general product. In these cases, Micro Technic could have an interest in producing and marketing the product, for example by adding additional features or by changing functionality to a certain extent.
If Micro Technic A-S considers that the product in a version with modified features or other functionality may be marketed and manufactured by Micro Technic, the customer may be offered a Joint Development Agreement, where the following applies:
Customer owns the product right of the originally specified product, which means that Micro Technic can not produce and sell the originally specified product to anyone other than the customer.
Micro Technic owns the production right of the originally specified product, which means that the customer can not obtain the product produced by anyone other than Micro Technic.
Micro Technic A / S owns the product right and production right of the variant product.
In addition to a necessary, concise user guide, the documented documentation is not provided to the customer.
The developed product is specific to the customer, but the variant that has changed features or functionality is more general, so the customer only pays a percentage of development costs. The rest – including costs for changing features or functionality of the variant – paid by Micro Technic.