As a general rule, certain intellectual property rights (IP) are granted by the parties to the joint venture when the joint venture is created. However, the parties must carefully state what they are granting to the joint venture, what the terms of such a licence are and what they do not grant or contribute to the joint venture. In addition, when setting up the joint venture, the parties to the joint venture generally determine how the joint venture will handle jointly developed intellectual assistance, the derivative investigation period and their ownership. In particular, the parties to the joint venture often focus in particular on common ownership, since common ownership may give rise to future conflicts with regard to the application and marketing of this legal assistance and with a view to exiting the joint venture. This American Life explains a historic joint venture between General Motors and Toyota, short for New United Motor Manufacturing Inc. or NUMMI. The joint enterprise contract with the AJE statutes are the two most fundamental legal documents of the project. The articles reflect many provisions of the Joint Enterprise Treaty. In the event of a conflict, priority is given to the JV document.
These documents are prepared at the same time as the feasibility report. There are also ancillary documents (called offsets in the United States) on the know-how and supply agreements for brands and equipment. U.S. competition or cartel and abuse legislation is subject to a variety of sources, including federal and regional laws, jurisprudence on the interpretation and enforcement of these laws, and various administrative rules. The main federal cartel laws are the Sherman Act and the Clayton Act, which generally promote competition and protect consumers from anti-competitive business practices. The Hart-Scott-Rodino Act (HSR), passed by Congress in 1976 and amending the Clayton Act, is particularly relevant for parties wishing to create a joint venture. The requirements of the HSR Act to submit notifications to the Federal Trade Commission and the Department of Justice`s Department of Agreements may apply to joint ventures depending on the size and structure of the transaction and the parties to the joint venture themselves. Where notification is required, the HSR Act sets the waiting times that must elapse before such a transaction can be completed and authorizes the authorities responsible for enforcing those deadlines until joint ventures provide some additional information on the likelihood that the proposed transaction will have a material impact on competition in violation of Section 7 of the Clayton Act. In 50/50 joint ventures, parties often form a board of directors or an executive that includes the same board seats. At equal seats, as long as the interests of the parties are coordinated, decision-making is often not an issue. However, if the interests are not coordinated, the parties must have appropriate deadlock situations.
See question 21 for further discussion of Deadlock`s provisions, which are often used in joint ventures in the United States. Since most joint ventures in the United States are incorporated as an LLC, you probably need to understand how to make an LLC. Major joint ventures include MillerCoors, Sony Ericsson, Vevo, Hulu, Penske Truck Leasing and Owens-Corning – and in the past Dow Corning. As noted above, a joint venture is usually limited to a single project or limited to a specified period, and although members of a joint venture share the costs of the joint venture, the profits are managed by each member. This is different from a partnership in which partners participate directly in a common pool of costs and benefits.