AUSTRIA: New judgement on goodwill indemnity to distributor.

A German distributor for bakery machines, represented by our office, claimed against his Austrian supplier for indemnity. The supplier had terminated the contract after 31 years. As all customer data were transmitted by the distributor when ordering the machines at the supplier, the customers could be available for the supplier immediately after the termination of […]

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UE: Revision of Regulation 2790/1999 by the EC Commission.

On July 28, 2009 the International Distribution Institute has sent to the EC Commission a Recommendation stating its position with particular reference to the provisions regarding franchising contracts. The International Distribution Institute is about to send to the EC Commission a further document, containing its observations on the revised provisions concerning agency agreements (the text […]

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IDI WEBSITE: new Country Experts and Reports.

In the Experts’ Section are now available the CVs of the following new country experts:   COLOMBIA (Ag and Distr): Gabriela Mancero COLOMBIA (Franchising): Juan Carlos Uribe CHINA (Co-expert for Franchising): Jun Kanda GERMANY (Franchising): Marco Hero LIBYA (Ag and Distr): Ingy Rasekh PORTUGAL (Franchising): Claudia Cruz SLOVENIA (Ag and Distr): Melita Trop TURKEY (Franchising): […]

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SPAIN: Car distribution agreement. Termination respecting previous notice. Contractual clause excluding the clientele compensation.

The parties, DARIO RODRÍGUEZ RAMÓN, S.A. (Distributor) and FABRICACIÓN DE AUTOMÓVILES RENAULT ESPAÑA S.A. and RENAULT ESPAÑA COMERCIAL, S.A. (Principals) had signed a car distribution contract in January, 1st 1991. In this document the parties agreed upon the possibility of unilateral termination by a one year’s previous notice to the other party with the exclusion […]

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The European Court of Justice corrects German case law on the commercial agent’s indemnity

The head note of the judgment is as follows:   1. Article 17(2)(a) of Council Directive 86/653/EEC of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial agents is to be interpreted to the effect that it is not possible automatically to limit the indemnity to which […]

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POLAND: A bonus for reaching the fixed level of sales is not subject to value added tax (VAT).

The question about the documentation of a bonus for reaching the sale’s or turnover’s level fixed under the contract seems to be unsolved in spite of the consequent jurisdiction line of the administrative courts in Poland. An appointed distributor, who reaches a level of sales entitling to bonus stated in the contract, has to decide […]

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UKRAINE: Recent Case Law in the field of Franchising.

Case 1 (2008) A company ‘A’ (‘Licensor’) entered into a licensing agreement with a company ‘B’ (‘Licensee’). Under the licensing agreement the Licensee was granted with an exclusive license for the trademark vested in the Licensor. Also pursuant to the licensing agreement the Licensor provided the Licensee with the technical documentation to be used for […]

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URUGUAY: Distribution Agreement.

(I) Statement of Facts The Uruguayan Court of Appealsfor the Fourth Circuit has recently ruled in a case involving a foreign supplier and a domestic distributor (Court Decision No. 20/2008). United Distillers & Vintners (SJ) BN (‘Supplier’) brought a legal action against its distributor, Parma Importaciones S.A., (‘Distributor’) to collect an owed debt. Afterwards, Distributor […]

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THE NETHERLANDS: Zwolle Lelystad District Court, Case N° 148006/KG ZA 08371 of 25/08/2008.

An exclusive Distribution Agreement had existed between the parties. The Contract contained a non-compete obligation for the Distributor during the term of the Contract. Furthermore the Contract provided for a secrecy/non-disclosure obligation pertaining to confidential business information acquired by the Distributor during the term of the Contract. The Distributor at a certain moment terminated the […]

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U.S.A.: Court upholds discipline against attorney who failed to provide competent franchise law advice to a franchisor.

Orr was engaged to represent a Nebraska start-up franchisor. The lawyer drafted a franchise agreement and disclosure statement, but failed to draft a complete Uniform Franchise Offering Circular. After the franchisor already had sold 21 franchises, it received a request for a UFOC from a prospective franchisee. The attorney then told the franchisor that the […]

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SPAIN: Proposal for a draft on Commercial Distribution Contracts Act.

A new impulse has been given to this Draft in the recent National Congress for Distribution Contracts promoted by the King Juan Carlos University and held in Madrid in December 2008. The State Secretary for Justice, at the initial communication, has announced that the Spanish Government is proposing a better regulation for the commercial distribution […]

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FRANCE: The French Competition Council position on the use of Internet in selective distribution.

The position thus taken by the French Competition Council is surprisingly categorical, reflecting a potentially questionable legal and economic analysis of the Internet distribution business. Indeed, from a legal standpoint, the Competition Council considers that such a prohibition against Internet selling constitutes a manifest restriction, within the meaning of Article 4(c) of EC regulation no. […]

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IDI Antitrust Report: revised version.

The present report not only refers to the agency and distribution agreements, but also covers selective distribution and franchise agreements. As regards agency contracts, the issue regarding the so-called ‘genuine agents’ have been updated, taking into account the recent judgements of the Court of Justice issued on December 14, 2006 (case C-217/05) as well as […]

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