Licensing & distribution

As an entrepreneur, you may decide to carry out all the relevant production, sales and research activities yourself. However, many business people prefer to outsource (part of) certain activities, especially if they operate internationally.

One well-known example is cooperation with (local) distributors or agents in the sale of products or services.

Watertight distribution contracts are absolutely essential
A watertight contract with your distributor or agent is indispensable for you as an entrepreneur. You can use this contract to regulate a great many important matters, such as your sales region, exclusivity (if applicable), your promotion method, conditions for use of your trade mark, targets and agreements on termination of the collaboration.

What can you regulate in a licensing contract?
Does your company own a popular trademark, for example, or a patent on a certain type of production technology, or an innovative software program? If so, you may decide to grant others the right to use (licence) this in exchange for payment of a royalty. Or perhaps you yourself would like to make use of IP rights or a certain type of know-how owned by another market party. In both these cases, you will have to conclude license agreements while considering the following factors:
 

  • In which countries will the licence be valid in?
  • How are the royalties calculated?
  • Is the license exclusive?
  • What is the duration of the agreement?
  • Will any action be taken against infringers, and if so, by whom and at whose expense?
  • Will the royalty remain payable even if e.g. the trademark or patent rights become void?


Our IP&T team has all the necessary expertise to assist you in drawing up, assessing and conducting the final negotiations on this kind of contract. And if any conflicts should arise, we will be very pleased to provide you with advice or assistance in legal proceedings.



Case Highlighted

Inditex S.A.

The practice group IP&T has assisted Inditex, right holder to the famous Zara brand name in a number of litigious files and procedures concerning the defence of its brand name before the Benelux office.
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Princess

The practice group IP&T is the key counsel of Princess Household Appliances B.V., a Dutch multinational active in the field of household products, sports and entertainment.
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