How do you limit a distributor from supplying competing products?

Question

How do you limit a distributor from supplying competing products?

Answer

  • Limiting a distributor from supplying competing products is something that many exporters fear to include in their distribution agreements – but is something that they should. A well drafted contract is key to stopping problems arising in overseas markets. This can’t be stated strongly enough.
  • It’s important to remember your distributor is not being inconvenienced when distributing your goods. By limiting the distribution of competitors this increases the likelihood of success for both of you. Distributing competing goods, of course, may not just undermine this but may ruin a particular market.
  • Limiting distribution of certain competing products should be negotiated with distributors to ensure they are proportionately incentivised to ensure the success of your product.

This answer was provided by Virtuoso Legal. For more information about how Virtuoso Legal can support you, visit their site at:

http://virtuosolegal.com/

This question was asked as part of our webinar on managing the legal risks of export. You can watch the recording of this webinar at:

https://opentoexport.com/webinars/managing-the-legal-risks-of-exporting/

If you’d like to learn more about protecting your trade marks overseas, check out the Institute’s new video training modules – produced in partnership with Virtuoso Legal – here:

http://www.export.org.uk/page/TrademarkVideoSeries

You can purchase each video separately or purchase the complete series of 12 videos for £250 +VAT (member price, non-members £310 +VAT), saving £50. To purchase the complete set please use the link at the bottom of the page.

Virtuoso Legal are a boutique firm of world class intellectual property solicitors. Over the past 10 years they have successfully represented clients in hundreds of intellectual property matters.

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