Distributors

Irish Competiton Law

Irish Category Licence The Competition Authority, now the Competition and Consumer Protection position, issued a category declaration in relation to vertical agreements and concerted practices in 2010. The declaration follows closely the equivalent 2010 EU block exemption regulation Market Share The declaration applies provided the market share held by the supplier does not exceed 30 percent of the relevant market on which it sells the contract goods or services and the market share held by the buyer does not exceed 30 percent of the relevant market on which it purchases the contract goods and services.… Read the rest

EU Competition Law

Overview The EU Treaty prohibits anti-competitive agreements and decisions which may affect trade between EU states which have as their object or effect, the restriction or distortion of competition within the EU common market. The effect must be appreciable.… Read the rest

Distribution Arrangements

Distribution Agreements A distributor is often given the exclusive right to sell a product within a particular territory. This is an exclusive distributorship. A distributor is in business on his own account and may be more motivated, as he takes on additional business risks. … Read the rest

Distribution Agreements III

Intellectual Property A distribution agreement will usually contain clauses which protect the supplier’s intellectual property so as to prevent the distributor from building up a competing brand or taking goodwill during the agreement or afterwards. IP Clauses The supplier grants to the distributor a right (exclusive or non-exclusive), in the territory, to use the suppliers’ trademarks and other intellectual property in the promotion, advertisement and sale of the goods and/ or services for the duration of the agreement.… Read the rest

Distribution Agreements II

Supplier’s Trading Obligations The supplier is usually obliged to supply the relevant goods as defined by the agreement. The agreement may require the goods/ product to conform to a defined specification. The supplier may undertake to use its best or all reasonable endeavours to meet all orders for the relevant goods forwarded to it by the distributor in accordance with its terms of delivery.… Read the rest

Distribution Agreements I

Nature of Agreement The agreement should define its character as an exclusive distributorship, sole distributorship or non-exclusive distributorship. This will be reflected by the presence or absence of clauses which provide for exclusivity and other key rights and obligations.… Read the rest

Distribution & Competition

Vertical Agreements Distribution agreements, Supplier agreements, franchise licensing and agency agreements are vertical agreements under Irish and EU competition law. Where market share is in excess of 40%, the undertaking may have a dominant position and the arrangements may constitute an abuse of that dominant position.… Read the rest