What Is Technology Transactions Law?

A legal practice area that combines the old and new in law and technology

By Canaan Suitt, J.D. | Last updated on March 12, 2024 Featuring practical insights from contributing attorneys Kevin M. Levy and Michael D. Oliver

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From smartphones to artificial intelligence, streaming to the Internet of things, and GPS to blockchain—technology is integral to daily life in our digital age and constantly evolving. To remain competitive, companies in the technology industry and beyond constantly adapt their business strategies to leverage new technologies. At the same time, governments enact new laws and policies to regulate their use and impact. Against this backdrop of greater technological reliance and change, technology transactions has become a highly relevant legal practice area for businesses across a range of industries.

“[Advancements in technology and law] are challenging to keep up with,” says Michael Oliver, a technology transactions attorney with Oliver & Grimsley in Towson, Maryland. “It changes, maybe not daily, but monthly. It seems like every time I turn around, another state is enacting a privacy law or changing the one they already have. It’s a very dynamic area of the law, and we help clients stay up to date.”

This article briefly introduces technology transactions, including some of the leading legal issues in this area of law and how technology transaction lawyers assist clients with their technology needs.

“A technology transaction is a business transaction between two or more parties that involves the development, manufacturing, sale, license, and/or use of technology in some form,” says GrayRobinson Shareholder and Technology Transaction Team Leader Kevin Levy, who is based in Miami, Florida, and has advised companies on business, corporate, and technology matters at all stages of growth for more than 25 years.

“The uniqueness of technology transactions is understanding how technology is developed, manufactured, and shared, as well as the market terms for the protection of the parties’ rights. It is also important to understand the data privacy concerns related to such transactions,” says Levy.

Oliver adds that “‘technology transactions’ is a catch-all term encompassing a pretty broad spectrum of legal issues,” including:

He says that technology transactions can involve many legal issues in the abstract. But practically speaking, the specific issues a lawyer handles are driven by client needs.

A technology transaction is a business transaction between two or more parties that involves the development, manufacturing, sale, license, and/or use of technology in some form… Preparing and negotiating documents for technology transactions involves a deep understanding of numerous laws, rules, and regulations across a range of jurisdictions.

Kevin M. Levy

Who Are the Clients in Technology Transactions?

Technology transactions attorneys help clients with legal needs involving technology and regulatory compliance. Of course, many industries use technology as a critical component of their business, so there are many potential types of clients in the technology transactions field, including but not limited to the following:

  • Software developers;
  • Telecommunications and information technology companies;
  • Digital media, publishing, social media, and entertainment companies;
  • Healthcare, pharmaceutical, and medical device manufacturers;
  • Biotechnology and life science industries;
  • Transportation and automotive industries;
  • Financial services and banking;
  • Energy and natural resources;
  • Universities and research institutions; and
  • Consumer products and retail.

What Laws Are Applicable in Technology Transactions?

“Preparing and negotiating documents for technology transactions involves a deep understanding of numerous laws, rules, and regulations across a range of jurisdictions,” says Levy, including:

“Many different laws can apply in data transactions. It depends on the nature of the transaction, technology involved, and applicable jurisdiction(s),” he says.

I work with clients and keep them out of court. That’s my number one goal: to make sure they’ve assessed their risks correctly, including the size of the risk, the insurability of the risk, and whether they can deflect risk to an insurance carrier or through a contract. I work with them to minimize the risk from a legal perspective.

Michael D. Oliver

Litigation versus Transactions: “We’re Not the Pre-Litigation Department”

Levy and Oliver practiced litigation early in their legal careers, then moved away from it to transactional work. They made the switch for a similar reason: transactional work is better for clients. Whereas litigation is backward-looking and tries to address problems that arose in the past, transactional work is forward-looking. It aims to prevent legal problems from arising in the first place.

“I got out of litigation over 20 years ago,” says Oliver. “What I do now is try to work with clients and keep them out of court. That’s my number one goal: to make sure they’ve assessed their risks correctly, including the size of the risk, the insurability of the risk, and whether they can deflect risk to an insurance carrier or through a contract. I work with them to minimize the risk from a legal perspective.”

Levy’s experience is similar: “One thing I have learned about litigation is that it’s not productive for either party. It costs a lot of time, money, and effort that can be better spent on developing a client’s business.”

As a result, Levy and his Technology Transaction Team “view their role as adding clarity to a transaction rather than as the pre-litigation department. We want the transaction to be as productive for our client as it can be, and in our client’s interest, that often means the documents are mutually beneficial.”

Find an Experienced Technology Transactions Team

Rooted in basic legal principles of contract law, technology transactions is a complex and constantly evolving legal field. It encompasses relatively straightforward business transactions to the most cutting-edge developments in law and technology.

If your business is engaged in or looking to expand into business transactions involving technology, software, or technology licensing, or you are concerned about compliance with data privacy laws, consult an experienced technology transactions attorney in your area. To do so, visit the Super Lawyers’ technology transactions directory to find the best lawyer for your legal needs.

Technology Transaction Attorney FAQs

Here are some frequently asked questions when meeting with a technology transactions law attorney for the first time:

How can you help me achieve my business goals?

A technology transactions attorney can give legal guidance on many types of business deals involving the sale, transfer, or licensing of technology. From negotiating favorable contract terms to conducting due diligence and resolving legal disputes, an experienced attorney can help you achieve your business’s technology goals while minimizing legal risks.

What types of technology transaction agreements does my business need?

Technology transactions can involve a variety of agreements depending on the nature of the transaction and your business’s needs, including software licenses, SaaS agreements, development agreements, intellectual property assignments, confidentiality agreements, and terms of service or end-user license agreements. An attorney can give advice tailored to your situation and ensure that each legal document is crafted to protect your interests.

What are some pitfalls to avoid in technology transactions?

Common pitfalls to be aware of in technology transactions include ambiguous or inadequate contract language, insufficient intellectual property protections, and inadequate dispute resolution mechanisms. Working with an experienced technology transactions attorney can help you navigate these pitfalls and mitigate potential risks.

How can I protect my intellectual property rights in a technology transaction?

Protecting your intellectual property is crucial in any technology transaction. An attorney can help you thoroughly review your transaction documents, including IP assignments, licenses, and ownership provisions. A tech transaction attorney can also help negotiate robust confidentiality and non-disclosure agreements.

What are your attorney’s fees?

Regardless of your company’s legal issue or an attorney’s practice area, attorney’s fees is an important conversation to have upfront. How much an attorney costs and their fee structure—hourly, flat fee, a hybrid approach—depends on various factors, including their experience, reputation, law firm size, and the kind of legal service you need.

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