Our firm has extensive experience in representing clients wishing to enter distribution agreements with a foreign manufacturer and or a foreign patent holder.
A distribution process is an expensive and complex one. It entails marketing, advertising, and a good deal of energy. Therefore, it is vital to formulate an exclusive distribution agreement with the manufacturer, which ensures that he will be prevented from selling the product via any other parties. It is also appropriate to try and enter into an agreement with a manufacturer who has a patent protected product, and/or a product which has other proprietary protection, in order to guarantee that once the product has been launched in the designated territory, no other parties will be able to seek distribution for identical or similar products in that territory.
Legal Consultancy for Distribution Agreements
As a commercial law firm, we guide our clients through the procedures of conducting and managing negotiations on various commercial agreements. Our counsel includes drafting the distribution agreement, while giving close consideration to the overall legal and commercial aspects.
Every distribution agreement must relate not only to the contract duration, the terms of renewal, and to the issue of exclusivity, but also to additional elements and parameters which are important to discuss and finalize. These include defining the distribution area, the terms of exclusivity, whether the product requires local stocks, financing methods, assurance of product quality and damages, returns and refunds system, the terms for cancellation of the distribution agreement, compliance with regulatory requirements, and more.
Additionally, in some cases it is important to plan Israeli and/or foreign taxation aspects. This is particularly true under circumstances in which the distributor is granted exclusivity from the manufacturer for more than one country, which sometimes may justify setting up additional activities, establishment of international companies, and so on.
The issue of intellectual property rights must also be taken into account. As a general rule, successful products almost immediately give rise to competitors. The only way to block them is by ensuring that the distributor holds a license to use the brand name, registered patent, trademark, and/or any other legal strategy which will make it extremely difficult for competitors to penetrate the field.
Distribution Agreements Lawyers
In light of the complexity a distribution agreement presents, it is extremely important to word it correctly and precisely while taking into consideration all the relevant commercial and legal parameters, the goal being to prevent future legal exposures.
Our firm, comprised of lawyers and accountants, and operating several branches and international desks, specializes in handling negotiations with suppliers and manufacturers abroad towards signing distribution agreements. We are well versed in interfacing with foreign entities, know what they expect and how they wish to conduct the process, how to formulate mutual consents which align with the business interests, and how to bring the venture or project to realization.
Our firm’s experts locate suppliers and draw up agreements, in support of formulizing the business plan, defining marketing strategies, and determining the most appropriate taxation plan. Clients enjoy personalized professional attention with fast response times and minimum costs.
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