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					  Project Management and
Production of Digital Content
         PDI E2005
          Room 4A.16

       Session 7
    11 October 2005
    Peter Olaf Looms
     Tine Sørensen
Today’s programme - Agreements & Contracts

  17:00-18:00       Risk - lecture (part 1)

  18:00-18:10       Break

  18:10-19:00       Risk Management - lecture (part 2)

 19:00 -19:10       Break

  19:10-20:50       Case 1; group work (planning; risk)

 20:50 -21:00       Evaluation of session 5; introduction to
                    session 6




         Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 2 -
Contents of the lecture



We will take a closer look at:
•Risk and threats
  • Risk as a culturally determined phenomenon
  • Risk thresholds
  • Risk categories
•The SWOT method
•Risc analysis
  • Identifying risks
      • Uvisheder
      • Nyheder
      • Dependencies
  • Quantifying risk
  • Risc management (planning, supervision og monitoring)
•The relationship between risk, organisational culture and project size

We will address the following questions:
•How does one proactively manage risk in small and large projects?
•Damage control when risks make themselves felt - strategies and metods?




                    Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 3 -
Reading



Giddens, Anthony. Runway World: How globalisation is Reshaping
Our Lives (New Edition) Chapter 2. Pages 20-35




            Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 4 -
Materialet er stillet til rådighed af:



Oskar Kovacs
Cand.merc. (jur.)
Konsulent i DR




           Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 5 -
What you need to know for this session



You don’t need any special
legal knowledge!
You don’t have to be a legal!
The focus is highly practical !




            Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 6 -
How to measure the success of today’s work



We’re going to focus on how
you use agreements to
protect
 • the interests of your project
 • the interests of your organisation
 • yourself
This requires a basic
understanding of the function
and signifcance of
agreements when doing
business:
 • What do I have to know and do
   myself?
 • When do I have to leave well
   alone and use a lawyer?



              Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 7 -
Scoping



The law as regards
 • agreements and contracts
 • IT and media regulation
 • Other legal instruments                              Other Agreements
                                                         legal     and
                                                     instruments Contracts



                                                                    IT and
                                                                     Media
                                                                   Regulation




             Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 8 -
Basic principles governing agreements



1. The function of the
   agreements
2. The agreement and the
   parties to it
3. Freedom of agreeement
4. Formal requirement




          Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen - 9 -
What is an agreement and
how does one enter into one?


 •   Purchase ?
 •   Loan ?
 •   Rent ?
 •   Quotation ?
 •   Gift/Donation ?
 •   Can an agreement be null
     and void?
     •   Tvang og vold (§28),
     •   Svig (§ 30),
     •   Fejlskrift (§ 32),
     •   Urimelige aftaler (§§ 31, 33, 36).




               Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 10 -
Agreements: a typology



 4 basic categories:

 Gensidigt bebyrdende aftaler
 Quotations which are subsequently accepted
 Framework agreements
 ”Letters of Intent”



 Haltende retsforhold
 Options




 Ensidigt bebyrdende aftaler
 Sponsorship and gift agremeents



 Ikke bebyrdende aftaler
 Expressions of Interest




                     Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 11 -
Agreements specific to IT and digital content



•Shrink Wrap
•Click Wrap
•How can agreements be
entered into digitally and
what are the challenges?
Example: Digital Rights and
Creative Commons




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The basic elements of a commercial agreement



•Introduction / Preamble
•Terms, definitions,
assumptions
•Division of responsibility
•The body of the agreement
•Miscellaneous chapters
•End (signatures, dates)
•Appendices, eg. Payment
plan and work plan




           Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 26 -
    What you should do yourself and what needs
    to be left to the experts (part 1)

•   It all depends on
     • Financial aspects
     • The subject of the agreement
     • The parties to the agreement
     • The strategic elements of the
        contract
•   Lawyers cannot contribute to the
    substance of an agreement about
    new media
•   Use an agreement specialist (also
    can merc. jur.) to pre-empt
    problems
•   The new media producer can do a
    lot him/herself to deal with
    problems (only use lawyers as a
    last resort)




               Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 27 -
 What you should do yourself and what needs
 to be left to the experts (part 2)

A new media producer needs:
    • To know the economic basis and
      consequences of an agreement
      covering his project
    • To be able to take part in business
      negotiations
    • To know the area covered by the
      agreement intimately
    • To supply factual information about
      potential options and risks
    • To understand the nature and
      granularity of management
      requirements (framework versus
      micromanagement).
    • To use and/or adapt standard
      contracts in a given field.




                Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 28 -
  What you should be left to the experts (part 3)


The advisor needs:
 • To know the economic basis and
   consequences of an agreement covering
   his project
 • To understand the difference between
   business and legal negotiations
 • To ”translate” the results of business
   negotiations into an intelligible yet
   legally binding text
 • To know the area covered by the
   agreement intimately
 • To supply factual information about
   potential options and risks
 • To understand the nature and
   granularity of management
   requirements (framework versus
   micromanagement).
 • To have a thorough understanding of
   the law applicable to the project


                Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 29 -
Checklist for a new media agreement

•   What type of contract is it
•   Parties to the contract
•   Definitions, assumptions
•   Aim
•   Scope of the contract
•   Rights
•   Consultancy services
•   Maintenance rights
•   Further development, etc.
•   Payment
•   Licences
•   Third-Party Licences
•   Confidentiality
•   The duration of the contract
•   Cancellation terms
•   Breach of contract
•   Torts and legal jurisdiction




              Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 30 -
    A few rules of thumb
•    Watch out for ”standard” terms of business
•    Make sure you have an unambiguous distribution of
     responsibility:
      •   Who has to deliver what, when and how to a given quality
          standard?
      •   What are the terms ”on time, on budget, at the right place and
          in the right way” defined?
•    Specify the deliverables in as precise a way as
     possible
•    Keep in mind ”good practice” in the field in question
•    Finish the contract before you start delivering
     services and deliverables.
•    Draft a contract while everyone is still on good
     terms.
•    If something is not specified explicitly
     then it should be covered by ”background art”
•    Make sure that you write down everything that
     might apply.
•    Finish the contract before you accept the quotation.
•    Makes sure you don’t let the contract get
     sidetracked into blue smoke and mirrors.
•    Stick with Danish law and Danish courts!

                    Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 31 -
What determines whether the contract is good
or bad?


• A management instrument
  that consists of a set of
  unambiguous rules of the
  game
• A document that pre-empts
  conflict
• A result that is of mutual
  benefit to all parties involved
• A result that confirms that
  the negotiated substance is
  legally binding and moves
  from the informal to the
  formal domain




            Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 32 -
Tell me more


 Main sources
 Retsinfor:
      •   www.retsinfo.dk
 Virksomheds Karnov,
      •   Karnovs forlag A/S
 Handelshøjskolen juridisk institut:
      •   http://www.cbs.dk/departments/law/jur_so
          urces_uk.shtml
      •   [PDF] DI aktuelt_VFile Format: PDF/Adobe Acrobat
          - View as HTML... Kontakter,. kontrakter og
          kodeks. Forskningssamarbejde mellem.
          universiteter og virksomheder. September 2004.
          Page 3. FORORD
          www.rks.dk/sider/publikationer/danske/coc.pd.pdf

 Secondary sources
 Vejledning - Kontrakter om komplekse IT-
     ydelser
      •   http://www.ks.dk/publikationer/1999/it-
          ydelser/index.htm
 Praktisk aftaleret,
      • Mads Bryde Andersen,
      • Christian Ejlers Forlag > Anbefales
 Dansk privat ret
      • Poul Kuüger Andersen mfl.
      • Jurist- og økonomforbundets forlag
 IT kontrakter,
      • Nicolai Dragsted,
      •   Forlaget Thomsen
                   Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 33 -
Group work


 Analysis of an EU R&D consortium
    agreement:

 Use the checklist on slide 30

 1. Does the agreement cover all
     the points on the list?
 2. If no, what is missing?
 3. Where are there problems in
     the suggested amendments?
 4. Is this the agreement for a
     small, medium sized or large
     project?




            Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 34 -
Case 2



We will be starting the second case about localising
the Simpsons for use on mobile phones.




          Project Management and Production of Digital Content PDI E2005 • Session 7 • Peter Looms & Tine Sørensen- 35 -

				
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