Strategic Solution

To address these challenges, Gouchev Law provided legal expertise to overhaul the client’s contracting approach. Partnering with a full-service boutique law firm allowed the agency a more flexible approach that fit within their budget while getting a luxury legal service. We developed a comprehensive plan to enhance their client services agreements, ensuring both financial stability and protection of intellectual property rights.

1. Introducing Clear Payment Terms and Penalties for Late Payments:
To prevent future cash flow disruptions, Seventy7 Hudson implemented explicit payment terms in its agreements. This included payment milestones, late fees, and escalation procedures for overdue invoices. The updated contracts also featured a clause allowing the agency to pause work if payments were delayed beyond a specified period. These changes not only provided financial security but also reinforced the agency’s professionalism and accountability in client relationships.

2. Strengthening IP Clauses to Protect Pre-Existing Assets and Monetize a full IP portfolio
Seventy7 Hudson revised its client services agreements to clarify IP ownership distinctions. New clauses established that any pre-existing IP brought to the project by Seventy7 Hudson would remain the agency’s property, with the client granted only a limited, non-transferable license to use the assets for specific purposes. For project-specific deliverables, ownership would be clearly defined, with options for licensing, rather than outright transfer, of high-value IP. This protected Seventy7 Hudson’s ability to reuse and monetize its proprietary work across clients. With IP clarified in the professional services agreements for ownership of newly created content, we proteced the agency’s future business opportunities.

3. Proactive Contract Negotiation Framework:
Armed with these revised agreements, Seventy7 Hudson’s team received training to confidently negotiate terms with new clients. The agency began to approach each client relationship with a proactive contract framework that covered payment schedules, IP rights, and contingencies for scope changes. This shift in strategy empowered Seventy7 Hudson to secure agreements that aligned with its growth objectives, reducing the likelihood of future disputes and increasing the predictability of cash flow.

The Results

By revamping its client services agreements, Seventy7 Hudson achieved several key benefits:

• Improved Cash Flow Stability: The updated payment terms and penalties ensured that Seventy7 Hudson received timely payments, even from larger clients who typically had longer payment cycles.
• Protected IP Assets: Clear IP clauses allowed the agency to retain ownership of its pre-existing work and control over its use, preserving the value of its creative assets.
• Increased Negotiation Power: The new contracting framework provided Seventy7 Hudson with a solid foundation to negotiate client agreements proactively, reducing risks associated with delayed payments and IP mismanagement.

The result was not only the recovery of outstanding payments from the Fortune 500 client but also a solidified relationship between Seventy7 Hudson and their future clients.

The Takeaway