COMPEL Glossary / co-development-agreement
Co-Development Agreement
A co-development agreement is a contractual arrangement where two or more parties jointly develop AI capabilities, clearly specifying how intellectual property ownership, development costs, risks, access rights, and commercial benefits are shared between the parties.
What this means in practice
These agreements must address complex questions unique to AI, such as who owns a model trained on combined datasets, how improvements to shared models are governed, and what happens if one party wants to use the jointly developed AI for purposes the other party objects to. For organizations entering AI partnerships, clear co-development terms prevent costly disputes and protect each party's strategic interests. In COMPEL, co-development governance is addressed in Module 3.4, Article 7 on intellectual property strategy for AI and Module 4.3 on cross-organizational governance.
Why it matters
AI co-development raises uniquely complex questions about IP ownership, model governance, and data sharing that traditional partnership agreements do not address. Without clear contractual terms, organizations risk costly disputes over who owns jointly trained models, how improvements are governed, and what happens when strategic interests diverge. Proactive co-development governance protects each party's interests while enabling the collaborative AI capability development that neither could achieve alone.
How COMPEL uses it
Co-development governance is addressed during the Model stage within the Governance pillar, where IP strategy and partnership governance frameworks are designed. The Calibrate stage assesses existing partnership arrangements for governance gaps. During Produce, co-development agreements are operationalized with clear decision rights and escalation paths. The Evaluate stage reviews partnership outcomes and governance effectiveness within the cross-organizational governance framework.
Related Terms
Other glossary terms mentioned in this entry's definition and context.