A consortium agreement is made between participants collaborating on a project and will govern a wide variety of issues and possible circumstances. A consortium agreement is very similar, and sometimes identical, to a joint venture agreement. The consortium agreement establishes the relationship between the partners, organization and implementation of the project, and the rights and duties of the partners. A well-prepared consortium agreement is intended to minimize the chances of a future business dispute between the participating parties and remove obstacles for cooperation.
The consortium agreement needs to be sufficiently detailed in order to show that the project will be handled with the balanced cooperation of the participants. The agreement ensures that all partners contribute to, and benefit from, equitable cooperation, and that the results of the collaborative projects are equitably shared though a controlled process meant to protect the parties and equally allocates intellectual property rights, such as trademarks, that may be created during the collaborative project.