Product Development Research Agreement
Full Question:
Answer:
A product development research agreement is an agreement that allows a consultant to perform research and development on a product or products owned or created by a manufacturer. Research and development helps to develop a totally new product or to improve an existing product or to develop a new product from an already existing product. A product development research agreement ensures that both parties understand their respective rights and obligations.
A product development research agreement helps the manufacturer improve and develop its product. The agreement also helps the manufacturer retain all rights with regard to the product developed by the consultant as a result of the research and development process. A product development research agreement also ensures and protects the interests of the consultant. In
exchange for the research and development services provided, the consultant receives monetary compensation and in some cases royalties on future sales of the developed product.
Following is a portion of a sample product development research agreement.
Agreement made on the ____ day of ____________________________, 20____, between ___________________________________________ (Consultant)
of_________________________________________________________ (street address, city, county, state, zip code) , referred to herein as Consultant, and__________________________________ _____________________________ (Corporation) , a corporation organized and existing under the laws of the state of ________________________________________, with its principal office located at ________________________________________ (street address, city, county, state, zip code) , referred to herein as Manufacturer.
Whereas, Manufacturer is presently planning the design and development of a new product; and
Whereas, Manufacturer desires to have the marketing potential for the new product determined by a marketing research firm; and
Whereas, Consultant is a marketing research firm desiring to perform the product survey;
Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Identification of Project
Manufacturer is planning the design and development of a product called ______________________________________________ (name of product), to be used for _____________________________________________________________________ (describe nature of use) , referred hereinafter as the Product. Product is within the line of products that Manufacturer presently markets, but represents a significant advancement in the state of the art and techniques presently used by Manufacturer. Manufacturer desires to determine the projected degree of public acceptance and use of the Product prior to making the financial investment necessary to redesign manufacturing facilities and to establish a new marketing and sales program. Manufacturer shall be represented on the project by _______________________ ________________________________ (name of representative) , referred to herein as Representative, a _____________________________________________________________________ (e.g., Vice President of Development) for Manufacturer, whose office address is__________________________________ ___________________________________________________________ (street address, city, county, state, zip code) , and whose business telephone is _______________________________ (e.g., 555-555-5555) . Consultant shall conduct all negotiations and liaison with Representative, who will report directly to Manufacturer.
2. Project Objectives
Consultant proposes to conduct a survey of projected consumers to gauge the acceptability of the Product if it is made available for public consumption. Consultant shall collect, organize, and analyze the necessary data to conduct a product development survey of a representative sample of the consuming public. Consultant shall interpret and present the results, reflecting the sample size and test area, and shall aid Manufacturer in applying the obtained results to the specific objective of assisting in formulating a decision to proceed with, or refrain from, the manufacture of the Product.
3. Procedural Planning
A. Consultant proposes that consumer reaction be measured by the use of a questionnaire. The questionnaire shall be designed by Consultant, and the questions would be so constructed as to obtain information from the consumer relative to areas of policy, product, market, and methods to be used by Manufacturer.
B. Policy questions shall be designed to generate information pertaining to pricing, credit, discounts, inventory, and turnover of the Product based on indicated public acceptance.
C. Product questions shall be designed to generate information pertaining to the public's needs and tastes, to the competition's advantages and disadvantages, and to possible alterations or additions suggested by public reaction.
D. Marketing questions shall include questions relative to determination of the composition of the purchasing segment of the public, including geographical, age, sex, and income considerations, and the activities of all competitors in the field.
E. Methods questions shall determine sales, advertising, service, and marketing techniques.
F. Consultant shall be responsible for the selection, training, and supervision of all survey personnel to be utilized by Consultant, and any increase in staff necessitated by the scope of the project shall be minimized by Consultant.
