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I also think one has to distinguish between linear (basically industrial) processes and non-linear processes such as you find in the so-called knowledge economy.
I am not saying that the asset-based LLP model cannot be applied to construction, manufacturing, transport, energy plant etc (You have examples of these, Chris - or at least proposals). But I think the LLP is especially suited to connecting people and groups and companies in endeavours involving knowhow and knowledge as the assets - in non-linear enterprises.

The partnership, the cooperative, the trust, are common enough business models in consultancy, accounting, law, advertising, marketing and especially in the entertainment industry. It is hard indeed to find a modern law firm in the UK that is NOT an LLP now. Hollywood has long used some of the collaborative, risk taking, lien and forward purchase elements of LLPs to put together movies.

In the creative and content industries, the LLP is perfect. There is no real capital investment involved. What do you need? An office, some mobiles, some work stations - everything can be leased. What you need is people/minds working together - and preferably not employees. These kind of loose groupings have been around for a long time in these industries. But they require a stack of bilateral contracts that are only brought out when there is a dispute - otherwise people work on trust, as long as there is transparency.

The LLP provides a much simpler way of assembling these groupings, with a much smaller overhead because the overhead is distributed away from what is essentially not a company but a networked agreement that can join together many disparate 'assets'.

You can't be me, I'm taken

by Sven Triloqvist on Wed Nov 28th, 2007 at 12:25:37 PM EST
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