INDIA: Supreme Court of India’s decision on stamp duty on underlying contract for a valid arbitration clause.

Section 11 of the Act provides various terms relating to the appointment of arbitrators and states that an application can be made out to the relevant court having jurisdiction over the subject matter of a dispute, in order to obtain an order of appointment of arbitrator. In a recent landmark judgment of the Supreme Court […]

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AUSTRALIA: Update – Report released on Senate Franchising Code of Conduct inquiry.

You can find relevant, former articles on the IDI website at: https://www.idiproject.com/news/australia-update-report-senate-franchising-code-conduct-inquiry and https://www.idiproject.com/news/australia-report-senate-franchising-code-conduct-inquiry   Following two further extensions by the Senate to the due date for the report, the report, Fairness in Franchising, was released on 14 March 2019 by the Parliamentary Joint Committee on Corporations and Financial Services (the Report). The full report is […]

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POLAND: Regarding that price is permissible or prohibited does not depend on how it is determined, but on whether the supplier gave the distributor possibility to change the level of prices stated in the price list.

In the decision no. DOK – 1/2013, issued on 25 June 2013 (DOK3-410-4/12/AS), the President of the Office of Competition and Consumer Protection considered as practice restricting competition and violating the prohibition mentioned in Article 6 (1) (1) of the Act on Competition and Consumer Protection, concluding by the company (franchisor) agreement with franchisees operating […]

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EU: The Nike decision of the EU Commission on competition law.

Although the relevant contracts were license agreements for the sales of licensed football merchandise (merchandising), the decision in fact concerns the restrictions on the sales and distribution of such products within the EU and the EEA market. Basically, Nike Inc., through different subsidiaries of its group obtained the IP license for the manufacturing and distribution […]

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PAKISTAN: Pakistan High Court rejects the claim of exclusive agent for specific performance.

The distributorship agreement was to remain in force until terminated by either party without a cause by serving 90 days advance notice. The agreement also provided an option to OTIS Elevator Company to terminate the agreement immediately after serving a notice of default to the distributor, and if the default continued for 10 days. The […]

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UK: Good Faith in the UK.

Sub-postmasters were required to enter into agreements which were similar to franchise agreements. The Post Office claimed that they had found shortfalls – some small, but others large, in the accounts of 550 sub-postmasters. The Post Office demanded repayment, but the sub-postmasters argued that the shortfalls did not arise through their carelessness or dishonesty but […]

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SWITZERLAND: The proof of damages in case of a premature termination of a distribution agreement: new guidelines by the Swiss Supreme Court.

The decision primarily deals with the proof of damages in connection with a premature termination of a distribution relationship. Moreover, it discusses the proof of the net annual earnings in connection with a claim for goodwill compensation in terms of article 418u of the Swiss Code of Obligations (“CO”). The new decision is of considerable […]

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SPAIN: Distribution Contracts. Goodwill compensation: not enough to be “fair”: it is necessary an objective module for its calculation.

The facts involved a Distributor (Cervigal SL) and Warsteiner Brauerei Haus Kramer KG (Manufacturer) who signed a distribution agreement for some beers. Once the agreement was terminated, the Distributor asked for a goodwill compensation of around 80.000 euros. First Instance Court n. 2 of Redondela, refused the claim because it considered that the Distributor did […]

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NORWAY: Appeal Court decision on immediate termination, identification between franchisee and owner and how to prove a loss.

1 Introduction Scandic Markiser AS (the franchisor) had terminated the franchise agreement with a notice period of three months due to falling sales compared with the previous year. About 14 days after the termination notice was sent, the franchisor terminated the agreement with immediate effect due to alleged material breach, claiming that SVT Gruppen AS […]

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CHINA:Franchisor’s Liability for Failure to Disclose in the People’s Republic of China (the “PRC”).

In 2017, the Franchisor and the Franchisee signed a Franchise Agreement granting the Franchisee an exclusive right to operate and sub-franchise a Russian ice cream brand “KOROVKA” (格林诺夫) in Lianyungang City, Jiangsu Province, China (“Territory”). The Franchise Agreement outlined detailed provisions regarding the benefits provided to the Franchisee for a share of the franchise fees […]

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ITALY: How the new trade secrets’ protection affects the content of the commercial agreements, in particular the distribution contracts.

With this reform, the limits of the unlawful behaviour have been redefined and broadened, both under the subjective element and the objective element. With reference to the objective element of the conduct, the modified article 99 introduces the notion of “significantly benefits”, in order to explain what kind of goods could be recognized as infringing […]

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GREECE: Greek jurisprudence 2018 on franchising agreements.

NON-COMPETITION CLAUSE Injuction 2916/2018 Court of First Instance of Athens The applicant (franchisor) had created a business organizational system for the trading, commercial representation and manufacturing of electronic cigarettes and technical expertise for the provision of relevant and related services, and it had developed a network of shops via the franchising method. The defendant (franchisee) […]

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NETHERLANDS: New proposed Dutch Franchise Bill grants franchisees far reaching veto rights and may restrict innovation and entrepreneurship.

The consultation term has ended 31 January 2019. There is good news for the sector: it has become an independent act which does not relate anymore to the widely criticized Dutch Franchise Code. More good news: the bill focuses to a high degree on the precontractual information obligations, by which franchisees are protected from taking […]

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