Exclusivity In Distribution Agreements
2 (c) Restrictions on Supplier Activity This provision provides that once you have granted the Distributor an exclusive right to sell your products in a specific geographical area, you may not search for yourself or other customers active in the Dealer`s geographical area, which exposes the Trader to competition. If you enter into an AED with other distributors located in other geographical areas, you must ensure that each distributor assumes a commitment in accordance with clause 2 (b). Otherwise, you may be violating agreements with your exclusive distributors. 2 (d) Reservation of rights by suppliers In certain sectors of activity, it may be necessary for suppliers to reserve the right to sell their own products to customers or certain segments of customers. This could apply to global channels, which are best served centrally by the provider itself. Some suppliers decide to agree with their distributors that, when selling products to customers or customer segments within the dealer`s geographical area, traders will receive a portion of the sales revenue, possibly in return for the implementation of a technical service for the products. 3 Trademarks The provisions mean that you grant the distributor the right to use your trademarks when marketing, selling or servicsing your products in the agreed geographical area. It is important that you ensure that your distributors do not register the trademarks you use in connection with your products, nor as domain names. Brand monitoring You can monitor the activities of your distributors – and those of others – by hiring a brand agency to monitor your brands.
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