ialci presentation at Tranoi NYC in September 2015: Right to promote, market and sell the products from the brand owner within the territory

1. New York,
September 2015
www.boetticher.com

2. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Taking back exclusive rights from distributors
and agents
Dr. Holger Alt
von BOETTICHER Rechtsanwälte

3. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Grant of distribution rights
Right to promote, market and sell the products from the brand owner within the
territory
typically combined with a license grant
Right to use IP Rights of the brand owner (Trademarks, Design and Copyrights)

4. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Legal problems following termination
What happened to remaining stock, marketing materials, labels etc.?
(P) Risk of abuse
Contractual Solutions:
• Grant of selling-off period
• Right to purchase back
• Obligation to return or destroy

5. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Legal problems following termination
What happened to Sublicenses?
The exclusive licensee has the right to grant sublicenses
(P) The termination of the license does not automatically result in a termination of
the sublicense (cf. e.g. German Federal Court of Justice, I ZR 24/11, 09/07/2012,
Take Five)
Contractual Solutions:
• Exclusion of right to grant sublicenses or right to reserve approval
• Exceptional right to termination for the sublicense agreement

6. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Legal problems following termination
What happened to (trademark) rights acquired by use ?
The licensee might have acquired trademark rights in the distribution territory
on basis of using the mark on the market.
(P) Licensee can try to interfere brand owner’s business and brand owner cannot
invoke on these rights against third parties
Contractual Solutions:
• Obligation to transfer possible rights acquired by use
• Obligation to provide relevant proof of use

7. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Legal problems following termination
The “agency” problem
A sales agent acts on behalf of the brand owner, introducing the products to
potential buyers, in exchange for a commission based on business deals
arranged for the brand owner.
(P) Upon termination the agent has a right to compensation (e.g. pursuant Sec.
89b German Commercial Code), including a right to inspection the books of
brand owner
Contractual Solution:
• Choose another distribution model

8. © von BOETTICHER Rechtsanwälte Partnerschaftsgesellschaft mbB
BERLIN MÜNCHEN
Dr. Holger Alt
Partner
email: halt@boetticher.com
•Intellectual Property Law
•Fashion Law
•Anti-Counterfeiting Strategies
•License & Distribution Law
BERLIN
Oranienstraße 164
10969 Berlin
T +49 / 30 / 61 68 94 03
F +49 / 30 / 61 68 94 56

9. Thank you for your attention.
BERLIN MÜNCHEN

10. Thank you for your attention.
BERLIN MÜNCHEN