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---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 04/20/2000=
=20 08:30 AM --------------------------- "NW on Application Service Providers" <ApplicationService@bdcimail.com< on= =20 04/20/2000 03:29:33 AM Please respond to "Application Service Providers Help"=20 <NWReplies@bellevue.com< To: <vkamins@enron.com< cc: =20 Subject: Intellectual property and ASPs NETWORK WORLD FUSION FOCUS: MIKE JUDE and NANCY MEACHIM on APPLICATION SERVICE PROVIDERS Today's focus: Intellectual property and ASPs 04/19/00 Dear Wincenty Kaminski, ~~~~~~~~~~~~~~~~~~This newsletter=20 sponsored by Citrix ~~~~~~~~~~~~~~~~~ Citrix is the world leader in application server software that ASPs worldwide depend on to deliver mission-critical applications with enterprise-class reliability and control. Citrix enables you to reach more users, with more applications, in more locations - with record speed, greater predictability and lower costs. Find out why the world's leading ASPs depend on Citrix to stand out from the competition. Call 1-800-644-9358 or visit us at http://www3.nwfusion.com/clk;1168935;4196132;k?http://nww1.com/go/1168935.h= tml ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LIVE showdown of network industry experts at a FREE webcast! Completely LIVE and unrehearsed! Join Network World's John Gallant and leading experts as they take opposing sides to debate hot networking issues taken from the headlines. Premieres May 5 at 1:00 p.m. ET. Register now at: http://www.itworld.com/itwebcast/nw ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Copy and paste URLs that break in two lines and remove extra spaces. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Today's focus: Intellectual property and ASPs --------------------------------------------- By Mike Jude and Nancy Meachim The deeper we get into the e-business paradigm, the more concerns we discover. The other day, we were talking to a manager at a large telecommunications company who was anxious over the contractual arrangements for an electronic-business relationship her company is developing. Specifically, she was worried about the protection of intellectual property in such an arrangement. Intellectual property - or IP, as it is known to lawyers - refers to copyrights, patents and trade secrets upon which your company depends for its competitive advantage. In short, it=01,s anything you don=01,t want your competitors to get their hands on. It can also include intangibles such as goodwill from current customers. How is IP put at risk in an application service provider (ASP) relationship? In any ASP arrangement, a customer is forced to disclose intellectual property to one degree or another. The property may be simple business plans or proprietary customer information. In any event, it is information that could do a great deal of harm if it were leaked to competitors or the universe at large. In the case of full-service ASPs (those that provide integration and Web design services), IP can also include the look and feel of the business in e-space. The problem is trust. An ASP must convince its customers that their information is secure. But how does an ASP even know what information needs to be protected? Customers must retain full rights to their intellectual property and ensure that it is secure from disclosure. The most effective way for a customer to secure IP rights and obligations is through a contract that clearly states who owns what. Just like a prenuptial agreement, both parties go into the arrangement with rights and property. It is important to get these on paper prior to the business relationship. And this contract is different from a service-level agreement SLA). While the SLA is a performance document, the business relationship contract is one of rights and responsibilities. This also applies to the look and feel of the business. If an ASP develops a Web presence for a customer that provides a unique advantage to that customer, it is essential that the customer get its IP rights in writing. One peculiarity of the IP world is that unless you specifically say something to the contrary, the creator of the IP is the owner. The guidance Enterprise Management Associates always gives is: when in doubt, write it down. If it offends the other party, at least you know where the sensibilities are. If it doesn=01,t, then that tells you something as well. In any case, having an obligation or right expressed on paper establishes a point of reference if things get fuzzy in the day-to-day ASP operation. As our telco manager friend noted, many things are uncertain in the new e-business world we are creating. She is right. But we will be more confident as we proceed if we remember that the obligations of good business practice have not changed. To contact Mike Jude and Nancy Meachim: --------------------------------------- Senior consultant Michael Jude and research director Nancy Meachim are with Enterprise Management Associates in Boulder, Colo., (http://www.enterprisemanagement.com), a leading analyst and market research firm focusing exclusively on all aspects of enterprise management. Jude has over 18 years of experience in the telecommunications industry, most recently with US West, where he was a manager of public policy. Mike can be reached at mailto:jude@enterprisemanagement.com. Meachim focuses on e-business management. She is currently conducting a research study on ASP management that is due to be released in April. Nancy's email address is mailto:meachim@enterprisemanagement.com. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FOR RELATED LINKS -- Click here for Network World's home page: http://www.nwfusion.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Of Copies and Rights, Network World, 02/07/00 http://www.nwfusion.com/columnists/2000/0207bradner.html The ASP effect on the software industry, Network World, 01/24/00 http://www.nwfusion.com/archive/2000/85264_01-24-2000.html E-commerce: Legal finesse, Network World, 02/28/00 http://www.nwfusion.com/ecomm2000/ecomm-legal.html Archive of Network World Fusion Focus on ASPs newsletters: http://www.nwfusion.com/newsletters/asp/ Other ASP-related articles from Network World: ASP specializing in customer service applications, Network World, 04/17/00 http://www.nwfusion.com/archive/2000/92655_04-17-2000.html Aventail CEO=01,s software-to-services tale, Network World, 04/17/00 http://www.nwfusion.com/archive/2000/92309_04-17-2000.html May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. Apply today at http://www.nwwsubscribe.com/nl ********************************************************* Subscription Services To subscribe or unsubscribe to any Network World e-mail newsletters, go to: http://www.nwwsubscribe.com/news/scripts/notprinteditnews.asp To change your email address, go to: http://www.nwwsubscribe.com/news/scripts/changeemail.asp Subscription questions? Contact Customer Service by replying to this message. Other Questions/Comments Have editorial comments? Write Jeff Caruso, Newsletter Editor, at: mailto:jcaruso@nww.com For advertising information, write Jamie Kalbach, Account Executive, at: mailto:jkalbach@nww.com Network World Fusion is part of IDG.net, the IDG Online Network. IT All Starts Here: http://www.idg.com Copyright Network World, Inc., 2000
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