Definition of Products, Territory and Distribution Rights

The agreed products covered by the agreement are defined therein. As regards new products in the same product category or categories, it is often advisable for the parties to agree, whether they are automatically covered by the agreement, or if a new agreement or amendment of the existing agreement will be required.

The distributor’s territory of operation must be defined and limited as clearly as possible, for example by listing the countries that are within the scope of the agreement.

It is possible to assign several distributors to the same territory, unless exclusivity has been agreed upon. However, it is common to grant exclusive rights to a distributor for an agreed territory. . In such cases, the principal cannot appoint other distributors or sell products directly within the said territory. The principal may, however, retain the right to sell certain or all products directly, in parallel with the distributor. When agreeing on exclusivity, it is advisable to carefully define the scope of the exclusive rights. In addition, the requirements imposed by competition law on exclusivity should be taken into account.