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Health Law Scan

Legal Insights and Perspectives for the Healthcare Industry

Members of our digital health and technology, outsourcing, and commercial transactions teams recently published a resource providing analysis of key considerations for tech service providers and life sciences companies collaborating in the digital health space, whether in regards to the development of artificial intelligence or other software, the provision of data hosting and analysis services, or a more complex collaboration.

These considerations include:

  • Business culture differences
    Differences in the parties’ cultures and specific business drivers to engage in the deal can impact negotiations and the parties’ working relationship moving forward.
  • Intellectual property ownership and license rights
    One of the most important considerations is intellectual property (IP): Who owns the IP, and how can it be used? Is the IP an off-the-shelf product, or is it being customized specifically for one party?
  • Regulatory responsibilities
    One of the first questions the parties should consider is whether they are working on a product that is or may become regulated and, if so, what regime applies.
  • Exclusivity
    In some collaborations or development agreements, a party may not be providing the technology but may be providing valuable insight or knowhow. Exclusivity can be used to meet the business needs of such a party.
  • Data use
    The parties should align on who is providing the data, if any; how the data will be protected; how each party can use the data and the results of the data combined with the services; and how a party can retrieve its data once the relationship is over.
  • Customer/use support and maintenance
    If applicable, the parties should have a clear agreement on who is providing customer support, what the service level agreement is, and what the remedy is for failure to meet the service levels.
  • Governance
    Ensuring continued alignment as well as compliance with current and evolving rules and regulations for each party’s industry typically requires the involvement of specific committees to deal with intellectual property matters, compliance and regulatory issues, policies and controls, and/or some oversight of the collaboration by the parties.
  • Termination
    Ensuring continued alignment as well as compliance with current and evolving rules and regulations for each party’s industry typically requires the involvement of specific committees to deal with intellectual property matters, compliance and regulatory issues, policies and controls, and/or some oversight of the collaboration by the parties.

Learn more about these considerations at length in the full blog post from Tech & Sourcing @ Morgan Lewis.