2 b) – Restrictions on Distributor`s activities The opposite of granting a right to market your products within a given geographic area prevents the distributor from actively seeking customers outside such an area. You may have designated other distributors in other geographic areas and all distributors expect to have “their” geographic area. Competition Protection Clause Under this section, you must decide whether your distributor must accept a competition protection clause that requires the distributor not to be allowed to manufacture, market or sell competing products during the life of the EDA. Competition protection clauses are generally legal, but national law may impose certain restrictions on their content, for example. B regarding the duration and geographic applicability of the clause. 2 c) Restrictions on Supplier Activity This provision provides that once you have granted the distributor an exclusive right to sell your products in a given geographic area, you cannot search for active customers within the distributor`s geographic area, exposing the distributor to competition. If you contract an AED with other distributors in other geographic areas, you must ensure that each distributor accepts a commitment in accordance with item 2 b). Otherwise, you may violate agreements with your exclusive distributors. 2 d) Supplier Ownership Reserve In certain industries, suppliers may reserve the right to sell their own products to specific customers or to certain customer segments. This could apply to global chains that are better served centrally by the supplier itself.
Some suppliers decide to agree with their distributors that when they sell products to such customers or segments of customers located in the distributor`s geographic area, distributors will receive a portion of the sales revenue, possibly in return for the introduction of technical customer service for the products. 3 Brands The provisions give you the right of the distributor to use your trademarks to market, sell or service your products in the agreed geographical area. It is important to ensure that your distributors do not register the brands you use with respect to your products as domain names.