Compulsory Product Registration: Don't Sign That Contract Just Yet!

Sure, you can tell me that if I have a good relationship with my client and really add value, I need not worry. While this may be true, why should I have to expend any extra energy to defend my turf? Why should I be expected to do all the expensive work associated with creating product credibility with a client, just so the vendor can pick up future revenue without the initial sales expense?

OLI THORDARSON

President, Alvaka Networks

How do we change this problem? By refusing to sign contracts that don't adequately protect our confidential customer information from the potential ill intent of our vendor partners. Sure, I trust a lot of the folks I deal with at key vendor partners. They are great people. They are not the problem. The problem usually comes up one or two years later when there has been personnel shuffling. That's when the rules of engagement change. That's what we need to protect ourselves against.

With compulsory registration, the stage is being set for a massive attack against the sovereignty and solvency of our channel companies. We must insist on better contract terms that contain clauses to protect and enhance the integrity of our relationship with our client. We must insist that the contract specifically state that the vendor will not market or sell directly to our customers. We must insist that they not share this information with any other firms.

Don't sign anything that does not look right. Make changes to the contract. I bet the vendors will approve it. I have added clauses to two recent contracts that, in brief, said: "Vendor will not market or sell product or services directly to customer introduced by channel partner, nor share this information with any other seller." I have also crossed out other clauses I thought to be particularly egregious. Choose your battles carefully. If you ask for too much, you may get nothing. But if it cannot be made right, don't sign it.

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