A joint venture is when two or more companies co-develop a product or service and agree to market it under both brands or create a third, shared brand.
A joint venture differs from joint marketing in that it deals with equity rather than commercialization dollars. Prominence of each brand involved generally reflects the level of investment each company brings to the venture.
Joint ventures are an effective means of leveraging the brand marks or reputations of other companies in a common effort. A joint venture also can provide economic benefits, such as shared R&D investments and lower marketing costs.
- The joint-venture agreement must address ownership of the brands that will be involved in the joint venture.
- All 3M company's brands used by the joint venture return to 3M company at the termination of the joint venture, unless otherwise stipulated in the agreement.
- The joint venture must use 3M company brands in a way consistent with the Brand Asset Management (BAM) policy unless those brands are used only in connection with the joint venture.
- The role(s) of 3M company brand(s) must be clear relative to any other brands that are used.
- Joint ventures that do not utilize any 3M brands are exempt from BAM policy.