What is a product development research agreement?

Full question:

What is a Product Development Research Agreement?

• Category: Contracts
• Subcategory: Research Agreements
• Date: 04/07/2025
• State: National

Answer:

A product development research agreement is a contract allowing a consultant to conduct research and development on products owned or created by a manufacturer. This process can lead to the creation of a new product or improvements to an existing one. The agreement clarifies the rights and obligations of both parties involved.

Such an agreement benefits the manufacturer by helping them enhance their products while ensuring they retain all rights to any new developments resulting from the consultant's work. In return for their services, consultants typically receive monetary compensation and may also earn royalties on future sales of the developed product.

Below is a sample outline of a product development research agreement:

Agreement to Conduct Product Development Research for a Manufacturer

Agreement made on the ____ day of ____________________________, 20____, between ___________________________________________ (Consultant) of _________________________________________________________ (street address, city, county, state, zip code), referred to herein as Consultant, and __________________________________ _____________________________ (Corporation), a corporation organized and existing under the laws of the state of ________________________________________, with its principal office located at ________________________________________ (street address, city, county, state, zip code), referred to herein as Manufacturer.

Whereas, Manufacturer is planning the design and development of a new product; and

Whereas, Manufacturer wants to assess the marketing potential for the new product through a marketing research firm; and

Whereas, Consultant is a marketing research firm ready to perform the product survey;

Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the parties agree as follows:

1. Identification of Project

Manufacturer is planning the design and development of a product called ______________________________________________ (name of product), intended for _____________________________________________________________________ (describe nature of use), referred to as the Product. This Product is part of the Manufacturer's current product line but represents a significant advancement in technology and techniques. Manufacturer seeks to evaluate the projected public acceptance of the Product before investing in redesigning manufacturing facilities and establishing a new marketing and sales program. Manufacturer will be represented in this project by _______________________ ________________________________ (name of representative), referred to as Representative, a _____________________________________________________________________ (e.g., Vice President of Development) for Manufacturer, whose office address is ______________________________________ ___________________________________________________________ (street address, city, county, state, zip code), and whose business telephone is _______________________________ (e.g.,). Consultant will handle all negotiations and communications with Representative, who will report directly to Manufacturer.

2. Project Objectives

Consultant proposes to conduct a survey of potential consumers to assess the acceptability of the Product if made available to the public. Consultant will collect, organize, and analyze data necessary for a product development survey of a representative sample of the public. Consultant will interpret and present the results, detailing the sample size and test area, and assist Manufacturer in applying the findings to decide whether to proceed with or refrain from manufacturing the Product.

3. Procedural Planning

A. Consultant will measure consumer reactions using a questionnaire designed to gather information on policy, product, market, and methods relevant to Manufacturer.

B. Policy questions will focus on pricing, credit, discounts, inventory, and turnover based on public acceptance.

C. Product questions will aim to gather insights into public needs, tastes, competition, and suggested changes based on public feedback.

D. Marketing questions will explore the composition of the target purchasing segment, including geographical, age, sex, and income factors, as well as competitor activities.

E. Methods questions will assess sales, advertising, service, and marketing techniques.

F. Consultant will be responsible for selecting, training, and supervising all survey personnel, minimizing any necessary staff increases due to project scope.