Exclusivity Agreement Pros And Cons

September 19, 2021 7:01 pm Published by

Parties entering into a distribution agreement should verify who is liable when a third party claims products that infringe the intellectual property rights of third parties. In this case, it would be appropriate for the provider to obtain appropriate insurance coverage and award compensation under the agreement, but might want to limit the amount of compensation to rights acquired by third parties for intellectual property infringement rather than extensive compensation covering all kinds of losses and rights. 1. Larger contracts – It`s very common for you to be able to argue in exchange for exclusivity for much larger deals, which is one of the reasons I love exclusivity as a seller. If collaboration with your company is very important to your customer or partner and if it is just as important to have a one-up vis-à-vis your competitors, then price increases are rarely an issue. But before leaving, it is important to conclude a clearly written distribution agreement with the distributor you have chosen in order to avoid the pitfalls that can be linked to overseas trade. That`s why we strongly recommend that life sciences companies get legal advice before expanding their business abroad and ultimately developing the continued success of their business. Our customers in the life sciences sector are aware of the need to comply with the rules applicable to medical devices when marketing and selling medical devices in Europe. Companies have responsibilities and requirements in this specific distribution sector, including keeping current technical records, inspecting production facilities and obtaining the CE marking of devices. Distribution agreements should therefore clearly state which party is responsible for compliance with local laws and guidelines in the country where the products are marketed and sold. 3. More commitments to success – If there is no alternative to exclusivity (sometimes customers or partners do not sign up unless they have some degree of exclusivity), you can, in addition to points 1 and 2 above, insist on flexible benefits.

You can ask for guarantees that the customer or partner appoints a minimum number of employees for the launch of your product, you can ask them to spend hard dollars on co-marketing, you can ask for obligations for case studies or reference calls or PR publications. At the end of the day, if you need to have restrictions on your activities, you need to make sure you are compensated for it. Direct sales to distributors mean that suppliers can pass on the significant risk associated with medical devices, which also extends to responsibilities such as complying with local legislation and obtaining certain authorisations and authorisations for the sale of certain pharmaceutical products or medical devices in other countries. Other advantages are that the supplier is not held responsible for the direct sale of goods to end customers; finally, that the control of sales for different customers in other countries is carried out by the distributor, which saves the supplier`s administrative costs. While in some situations exclusivity agreements can be extremely detrimental to all parties involved, they can in most cases be very fruitful for signatories. For life sciences companies that want to enter overseas markets, distribution agreements are essential for success The supplier may consider it more appropriate to have direct contact with the end customer where tailor-made products are sold and to have more control over their turnover. . .


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