The term “strategic alliance” is an excellent marketing lingo for a couple of parties who are forming a joint venture or other joint entity. Its purpose? Best used for new ideas or technology developed by multiple parties, a strategic alliance entity and agreement will facilitate the exposure to common legal issues that come up in any business, specifically technological, venture.

A well drafted agreement should specify the respective roles of each party including their responsibilities, a decision-making procedure, capital investment, revenue allocation, tax considerations, and ownership of intellectual property. A strategic alliance can be a synergistic relationship, but there may be issues regarding antitrust laws, exit strategies, or if one of the parties become insolvent.

There are plenty of strategic alliance agreement samples available online. As always, use these canned agreements with caution. They often fall short to be effectively tailored to your specific circumstance.