Legal Frameworks for Technology Solutions
The increasing proliferation of technology in all industries demands new legal frameworks. One notable example is SavarOne, a pioneer in the development of technology solutions designed to prevent distracted driving. In the United States, the company has already implemented its technology in work trucks with a capital value of $120,000,000 in order to prevent distracted driving among their drivers. The idea of connecting technology solutions to a legal framework like a comprehensive turnkey contract agreements is to foster investor confidence in the implementation of innovative technology solutions.
Before exploring the legal frameworks that technology companies can leverage, it is important to understand the way SavarOne’s solutions function. The company was founded on the principle that distracted driving is the leading cause of road deaths. The solution developed by SavarOne aims to eliminate these deaths by addressing the causes and consequences of distracted driving. More specifically, SavarOne’s technology solutions are designed to educate and mitigate driver distraction by offering solutions like phone calls and messages being directed to a speaker system, allowing the driver to hear rather than read a text message. In other words, the technology solution created by SavarOne is similar to “speaking” the text message or email.
However, the solutions offered by SavarOne do not end there. With the use of a “do not disturb” feature in an app on a worker’s phone, the technology will cut off distractions, only allowing save work emails and texts. Available in markets across Israel, SavarOne’s technology offers turn on/off features, contact prioritization, doesn’t release emergency calls, and can be fully customized to fit either a company’s Fleet policies of a worker’s individual desires and interests.
The real question is how exactly can an investor be reassured of the value of investing in an innovative new technology? It might be daunting to consider taking on the risk of investing in a company that is tackling such a large issue as preventing distracted driving, however, the legal framework offered in a turnkey contract agreement can assure investors that the investment will help to ameliorate this important issue. In legal terms, turnkey can be defined as: A contract or other agreement under which a producer provides an entire product or service to another party. (Wex Legal Dictionary).
A turnkey contract agreement clearly defines the obligations of the parties involved the contract and allows the technology company to offer an entire product or service to the investor. The benefit of a turnkey contract agreement is that the terms are clearly defined and provide peace of mind to the investor. For example, SavarOne could invest in a legal framework agreed to by all parties involved that provides clear definitions of what the technology will do, how it will do it, and the expected result from the technology utilized.
While the benefits of such legal frameworks are considered common sense by many, the problem is that the cost and benefit analysis associated with entering into a turnkey contract agreement are rarely considered on a global scale. For example, if SavarOne were to implement a technology solution for an investor that fails to prevent distracted driving, the investor and company can both point to the legally defined purpose of the contract and enforce that the contract objectives have been unmet. In such circumstances, the investor would be reassured that their investment failed to meet the objectives because the technology solutions offered by SavarOne were not able to perform as intended.
In contrast, it is also important for SavarOne to protect itself against unexpected losses or risks. In this way, the company might enter into a contract that shifts the risk to the investor to handle losses associated with the technology implementation in order to alleviate SavarOne’s exposure to risk. Alternatively, the company might agree to accept some level of risk to provide peace of mind to the investor and increase the chance the investment will be accepted.
The point is that a turnkey contract agreement can protect both a tech company and an investor. At this point, SavarOne’s technology has been implemented in the logistics and transportation industries in Israel; however, the goal for the company is to expand to other markets where distracted driving is a significant contributor to road traffic deaths. Understanding the potential for a legal framework to give SavarOne leverage with investors, the company can use this leverage to encourage investment and expand into new markets.
In the past, companies like Microsoft and Apple have utilized successful turnkey projects to aid in the expansion of their platforms. For instance, Apple sought out a contract manufacturer who would become a partner in the implementation of their innovation. Like the technology that SavarOne is developing, Apple sought to remove the risk of losing valuable IP to a manufacturer. In other words, Apple was seeking out a legal framework that would allow them full ownership of their innovations and prevent others from using the technology uncovered in the R&D process. In SavarOne’s case, the company can offer investors a solid legal framework that not only protects the investor but also gives the company enough leverage to complete the implementation of the project with minimal disruption and maximum benefits to the company’s bottom line.
Targeted to companies looking to grow in innovative directions, SavarOne’s technology solutions are designed to prevent distracted driving. With the importance of utilizing legal frameworks to encourage investor confidence, these are the types of ideas that can transform an industry and expand a company’s capabilities.
