A company that operates a restaurant enters into a 5-year contract with a beverage wholesaler, under which the restaurant operator agrees to obtain exclusively from the wholesaler a consideration for the payment of an advance on rebate of 5,000 euros. Less than a year later, the wholesaler (…) Here we see the close link between contractual exclusivity and intellectual property rights. If a product is designed by the customer and protected by IP rights, the contractual exclusivity clauses may be less cumbersome for the manufacturer. If a product is designed by the manufacturer and protected by IP rights, then it is unwise to contractually limit the manufacturer`s rights to do things that fall within the IP protected area of exclusive measures. This series of articles highlights the existing debate on the role of competition policy in the digital economy. Each article takes a different approach to the subject. The first two discuss non-price strategies practiced by monopolistic digital platforms and corrective measures (…) On 7 October 2020, the European Commission (the “Commission”) made legally binding commitments from Broadcom to ensure competition in the chips markets for modems and TV set-top boxes. WHAT YOU NEED TO KNOW – KEY TAKEAWAY`S COMMITMENT DECISIONS ARE INSTEAD OF LOOKING FOR A (…) One of the great advantages of intellectual property rights over non-compete contractual clauses is that they may be subject to much greater regulatory restrictions. Under English law, competition restrictions are governed by competition law (including general trade restrictions). Non-competition prohibitions must always be drafted with competition law in mind.
In some cases, you should use the category exemption for vertical agreements to ensure that your clauses and contracts are protected from EU competition law. Schwarzkopf (`Schwarzkopf` or `supplier`), which markets hairdressing products, enters into a partnership agreement with Pascal Coste and his subsidiary New Line (`Pascal Coste` or `distributor`) at the head of a network of franchises and (…) An exclusive distribution agreement may manifest itself as a territorial restriction if the supplier agrees to sell its products to a distributor only for resale in a specific territory or as a customer restriction, where the supplier is limited to sales to a particular group of customers. It is very popular in the pharmaceutical sector, where chemists are named exclusively for institutional sales to large buyers like hospitals, etc. This raises the problem of international manufacturing agreements. Consider an agreement between a customer based in England and a manufacturer in the Far East. Even if such agreements are defined as a state of English law, the courts of the jurisdiction in which the manufacturer is established may apply their competition law to decide that non-competition or exclusivity clauses are unenforceable or even illegal. It is therefore essential to have a good lawyer under the responsibility of the manufacturer to verify the competition and exclusivity clauses in quality contracts, regardless of their applicable law. On 27 April 2020, the European Commission (the Commission) invited interested parties to comment on Broadcom`s commitments under Article 9 of Regulation (EC) No. 1/2003 to address competition concerns related to certain exclusivity and quasi-exclusivity agreements that have been concluded (…) On 26 December 2019, the newly created Competition Authority of New Caledonia issued its first sanction decision.