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Product Development Contract

Product Development Contract Template for Austria

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Key Requirements PROMPT example:

Product Development Contract

"I need a Product Development Contract under Austrian law for developing a new IoT smart home security system, with specific focus on GDPR compliance and software licensing terms, where we'll retain all IP rights and require ongoing maintenance support through 2025."

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Document background
The Product Development Contract is essential for any business engagement involving the creation of new products under Austrian jurisdiction. It serves as the primary legal framework governing the relationship between a client and a developer, whether for software, hardware, or hybrid solutions. This contract type is particularly important in Austria's innovative technology and manufacturing sectors, where it must comply with both Austrian civil law (ABGB) and commercial code (UGB) requirements. The document typically includes comprehensive provisions for intellectual property rights, development milestones, acceptance testing, and quality standards. It should be used whenever a company commissions the development of a new product, requiring detailed specification of deliverables, timelines, and technical requirements while ensuring protection of both parties' interests under Austrian law.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and general purpose of the product development

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Development: Detailed description of the product to be developed and development services

5. Project Timeline and Milestones: Development phases, deadlines, and key milestone dates

6. Development Fees and Payment Terms: Pricing, payment schedule, and invoicing requirements

7. Intellectual Property Rights: Ownership and licensing of pre-existing and newly developed IP

8. Acceptance Testing: Testing procedures, acceptance criteria, and remedy of defects

9. Warranties and Quality Standards: Quality requirements, warranties regarding the development work

10. Confidentiality: Protection of confidential information and trade secrets

11. Liability and Indemnification: Limitation of liability and indemnification obligations

12. Term and Termination: Duration, renewal, and termination provisions

13. Force Majeure: Handling of events beyond parties' reasonable control

14. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. Third-Party Contractors: Required when subcontractors or third-party developers are involved in the development process

2. Software Development Specifications: Needed when the product includes software components

3. Manufacturing Requirements: Include when the developer is also responsible for manufacturing or production

4. Data Protection: Required when personal data processing is involved in development or final product

5. Exclusivity Provisions: Include when exclusive development rights or territory restrictions apply

6. Training and Documentation: Needed when developer must provide training or detailed documentation

7. Post-Development Support: Include when ongoing maintenance or support is part of the agreement

8. Export Control: Required when product may be subject to export regulations

9. Insurance Requirements: Include when specific insurance coverage is required for the development

10. Source Code Escrow: Needed for software development projects requiring code safeguarding

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for the product

2. Project Plan: Detailed timeline, resource allocation, and development methodology

3. Pricing Schedule: Detailed breakdown of fees, costs, and payment milestones

4. Acceptance Test Criteria: Specific criteria and procedures for acceptance testing

5. Quality Standards: Detailed quality requirements and standards to be met

6. Background IP: List of pre-existing intellectual property rights of each party

7. Key Personnel: List of key team members and their roles in the development

8. Service Levels: Performance metrics and service level requirements

9. Change Request Process: Procedures for requesting and implementing changes

10. Security Requirements: Security standards and protocols to be followed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Acceptance Criteria
Acceptance Tests
Background IP
Change Request
Confidential Information
Deliverables
Development Fees
Development Phase
Development Services
Development Timeline
Documentation
Effective Date
Final Product
Foreground IP
Good Industry Practice
Intellectual Property Rights
Key Personnel
Milestone
Product Requirements
Product Specifications
Project
Project Manager
Project Plan
Prototype
Quality Standards
Related Rights
Source Code
Technical Information
Technical Specifications
Test Period
Third-Party Materials
Updates
User Documentation
Work Product
Working Day
Clauses
Definitions
Scope of Services
Development Services
Project Management
Timeline and Milestones
Change Control
Acceptance Testing
Quality Requirements
Deliverables
Payment Terms
Intellectual Property Rights
Confidentiality
Data Protection
Warranties
Indemnification
Limitation of Liability
Force Majeure
Term and Termination
Documentation Requirements
Progress Reporting
Personnel Requirements
Subcontracting
Testing and Acceptance
Maintenance and Support
Record Keeping
Compliance
Insurance
Dispute Resolution
Governing Law
Assignment
Amendments
Notices
Entire Agreement
Severability
Waiver
Third Party Rights
Relevant Industries

Technology

Manufacturing

Software Development

Industrial Design

Consumer Electronics

Automotive

Medical Devices

Aerospace

Telecommunications

Internet of Things

Biotechnology

Clean Energy

Consumer Goods

Chemical Industry

Engineering Services

Relevant Teams

Legal

Research and Development

Product Development

Procurement

Engineering

Quality Assurance

Project Management

Commercial

Technical Operations

Innovation

Intellectual Property

Compliance

Contract Management

Relevant Roles

Chief Technology Officer

Product Manager

Legal Counsel

Procurement Manager

Research and Development Director

Project Manager

Contract Manager

Technical Director

Innovation Manager

Development Engineer

Chief Legal Officer

Head of Product Development

Commercial Director

Intellectual Property Manager

Quality Assurance Manager

Operations Director

Chief Executive Officer

Industries
Austrian Civil Code (ABGB): Provides the fundamental framework for contract formation, performance, and enforcement, including general principles of contract law
Austrian Commercial Code (UGB): Governs commercial relationships and transactions between businesses, including specific provisions for commercial contracts
Austrian Patent Act: Regulates patent rights and protection of inventions that may arise during product development
Austrian Copyright Act: Protects original works including software, technical documentation, and designs created during product development
Product Liability Act (PHG): Establishes liability framework for defective products and safety requirements
Federal Act on the Protection of Personal Data (DSG): Implements GDPR requirements and governs the processing of personal data in Austria
Austrian Labor Law (ArbVG): Regulates employment relationships and contractor agreements if the development involves hiring personnel
Federal Act against Unfair Competition (UWG): Protects against unfair business practices and governs confidentiality obligations
Austrian Trade Mark Protection Act: Protects trademarks and brand elements that might be developed as part of the product
Austrian Design Protection Act: Protects industrial designs and aesthetic aspects of products that may be created during development
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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