IMPROVING LEGAL DOCUMENTS IN CROWDFUNDING: MODEL WHITE LABEL CONTRACT

I see a lot of contracts between would-be Crowdfunding portals and “white label” portal software providers. It would help the industry, in my opinion, if everyone used or at least started with the same agreement. So I’ve drafted a model agreement, accessible as a Microsoft Word document here.

An agreement for a white label platform is a software license agreement. I’ve drafted more software license agreements than I can count, representing both licensors and licensees. That gives me a very good feel for what’s important, what’s not so important, and what’s fair.

My model agreement is designed to be a very fair document. It protects what’s important to the white label provider, and also protects what’s important to the would-be portal licensing the platform. It is also designed to be a comprehensive document, meaning it covers what’s important without overkill. I hope it’s easy to read and understand, as legal contracts go. And it’s completely flexible in terms of what the customer gets and how much the customer pays.

Multi-million-dollar portal businesses are being created based on the relationship created by this contract. It’s not a back-of-the-napkin kind of thing.

Because there could be special situations that the model agreement doesn’t cover, white label providers and their customers should have this model agreement reviewed by their own lawyers. Also, I haven’t provided a Service Level Agreement, because response times might vary significantly among white label providers.

But using one standard agreement should make things easier for everyone. Fewer transaction costs, less friction, greater certainty, faster to market. That’s what the industry needs.

 

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