A legal advisor is an indispensable guide to successful IT business scaling
What unites companies in the field of electronic communications, full-time programmers, teams of developers and freelancers in the IT and TMT sphere with lawyers?
The need for protection of their assets, interests and business reputation. And, of course, intentions to develop and scale the business.
The law company MK Legal service and its managing partner, lawyer Maksym Kurochko, have been accompanying the leaders of this field for more than 10 years, and therefore know from practice all the pitfalls and risks of conducting IT and TMT business in Ukraine.
1) Which IT/TMT projects has MK Legal Service implemented together with its clients?
The field of IT/TMT is one of the main specializations of our company. With our constant support, the telecommunications operator GigaTrans has turned into a market leader in the form of a whole group of GIGAGROUP companies, including a telecom operator, a data center, a cloud operator and a cyber security agency.
Our team provided GIGAGROUP with legal services necessary for successful business development, such as:
- corporate structuring and tax optimization;
- obtaining the necessary licenses and permits;
- development and implementation of a system of contracts with clients and counterparties;
- support of inspections of controlling bodies;
- obtaining the necessary international and national certificates;
- registration of ownership of brands and technologies of companies, etc.
2) What is the uniqueness of services provided by MK Legal Service?
MK Legal Service is the main business partner of our clients. And this is not only our slogan, but the basic principle of work. From the moment of its creation 10 years ago, in the composition of several corporate lawyers, our company was actually born from business. That is why our mission is not limited to providing quality legal services.
Thanks to our in-house experience, we know what system enterprises really need today, so we comprehensively support companies, creating additional partner values for them. We manage the client's business risks - predict, identify and minimize them. MK Legal Service lawyers are ready to respond quickly and answer questions 24 hours a day, 7 days a week.
Having studied the needs of our clients in detail, we give legal form to the most ambitious business ideas and solve clients' problems with minimum resources and maximum results.
3) Can you use a specific example to demonstrate the need for an experienced legal advisor for business?
One of the systematic and complex tasks during our GIGAGROUP support is the establishment of safe and profitable cooperation with various counterparties, the basis of which is definitely an effective system of agreements and contracts, developed and implemented individually for each client, taking into account special conditions and needs.
GIGAGROUP provides a variety of services for both Ukrainian businesses and foreign companies, so communication, negotiation and discussion of contract terms have many features.
As a legal partner, MK Legal Service helps GIGAGROUP in the following contractual matters:
- Analysis of existing contracts— we check the contracts already in force between GigaGroup and counterparties in order to timely assess the need for changes in conditions, renegotiation of contracts or conclusion of additional agreements.
- Support of contractual negotiationsis a complex process that begins with the analysis of future partners and counterparties, checking their reliability and establishing their needs.
During negotiations, we argue the importance of signing a contract based on a template developed to minimize amendments to contracts taking into account the specifics of the client: this way, subscribers receive a system-tested set of services, and GIGAGROUP can increase the network of subscribers and contractors thanks to a unified format of interaction.
It also protects the company from possible abuses and pitfalls hidden in contracts that counterparties will offer from their side.
- Control of the execution of contracts— we check the quality of service provision to subscribers, the timeliness of contractors' fulfillment of obligations and payment for services, identify possible violations.
- Protection of the interests of GIGAGROUP in conflicts with counterparties— if subscribers express dissatisfaction with the services provided, pay for them late or have any other complaints against our client, we negotiate with them and listen to their position. Depending on who is at fault in the situation, we offer ways to resolve the dispute without going to court, because it saves time and money for both parties. That is why we resolve most such conflicts at this stage.
- Negotiations with representatives of non-residentsto clarify the need to change the terms of the contract — in the conditions of constant changes in the business environment and the expansion of the partner network, we offer legal tools that help protect the interests of GIGAGROUP and at the same time maintain the appropriate level of service provision.
- Support of negotiations with lawyers and managers of suppliers— to establish partnership relations with new suppliers, we act on the side of GIGAGROUP to establish favorable conditions of cooperation for the client.
Therefore, thanks to the complex and systematic legal support of MK Legal Service, the GIGAGROUP group of companies saves time and money at all key stages of cooperation with subscribers and suppliers and receives reliable legal support during negotiations with them and in case of conflicts.
4) What are the main tips you can give to owners who plan to scale their IT business?
The main thing is to get the support of an experienced legal advisor in this field, who knows from practice who and what to check so that investments in IT business turn into its scaling and profit growth.
Particular attention should be paid to detailed due diligence of partners and companies involved in scaling: investors, owners of IT assets, etc. Among the mandatory steps in this case are:
- Legal due diligence not only of registration and financial data of companies, but also a detailed check of target IT assets, potential partners and their business reputation, IP objects and employees of such companies;
- Checking the availability of all necessary licenses, permits, international certifications in companies;
- Proper drafting and signing of reliable contracts and all additional documents to consolidate verbal agreements and protect the interests of the owners. Moreover, at different stages of business development, these will be different types of contracts and documents and it depends on many factors (corporate structure, territory of economic activity, methods and types of involved investments, intentions of the parties, etc.);
- Obtaining the necessary permits from authorities to approve certain agreements.
When it comes to international expansion, it is important to choose the most favorable jurisdiction and develop a suitable corporate business structure.
Owners of large-scale and systemic IT businesses have many tasks that require special specialization and resources, so an IT lawyer is absolutely indispensable!
The company MK Legal service and attorney Maksym Kurochko are leaders in IT law according to the main national legal ratings: "Client's choice. TOP 100 best lawyers of Ukraine", "Lawyer of the year 2021", "Ukrainian Law Firms 2021"
The article was published on the website of the European Software Engineering Association