The Feedback Clause

"What is the Feedback Clause?  
The Feedback Clause has its variations, but it typically reads something like this: 
Any ideas, suggestions, comments one party makes or delivers to the other party that concerns the other party's products or services ("Feedback") may be used and commercially exploited by the party receiving the Feedback.

Why is the Feedback Clause Used?

• It acknowledges the helpful nature of people.  It allows parties to be helpful to one another in an informal and fluid manner without anyone having to "lawyer-up" before making a suggestion regarding the other party's products or services.
• It protects to both parties. The party who receives the Feedback can use it and the party making the Feedback does not have to make any representations or warranties of ownership, non-infringement, etc.
• Face it, employees like to give feedback and will do so regardless of what the contract they never read says. 
• It puts the risk of vetting the Feedback on the party who receives the Feedback and wants to exploit it, which is a fair compromise and allocation of the risk.

Contact Mark D. Walters