Companies carrying out this type of cross-border activity need well-structured international distribution agreements. Remember your intellectual property: if you appoint a distributor, you also grant a license to use your intellectual property for distribution. You basically give them access to your most sensitive assets. It is allowed to use your domain name, logo and trademarks. If these issues are not explicitly addressed in the agreement, it can lead to situations where your trader takes possession of your intellectual property and effectively locks you out of the area. Agency contracts and distribution agreements are an integral part of the business, both in the UK and globally. A bit related and often confused, it`s important for entrepreneurs to understand the differences between the two and how each should be executed carefully to benefit your business. In this article, we start with the basic definitions, right down to the provisions you should include in any agreement and how EU law can also apply. There are different forms of distribution operations. There are exclusive and non-exclusive distribution agreements. In an exclusive distribution agreement, there is only one distributor or commercial agent.
The distributor is excluded from other distributors. Therefore, the product supplier is limited to the performance of that distributor. If the distributor does not sell a product, no product is sold. Therefore, the law implies a certain burden for these distribution agreements. Regardless of what is written in the distribution agreement, the law will find that it will be violated if the distributor does not actually try to market the products. Similarly, distribution agreements should have explicit conditions. This problem arises when distributors distribute several products and/or have other stores. It is therefore advisable to carefully define the subject matter of the contract and indicate an explicit reference to topics such as updated or updated products.
For example, if you designate certain software as the products for sale under the agreement, recent versions of the software could be considered covered by the distributor`s exclusive rights and another may consider them to be outside the scope of exclusivity (and there is no doubt about either). . . .