Industrial Rights of the Principal

The distributor’s right or obligation to use the principal’s trademarks or other marks in connection with the agreed products and the marketing thereof is often agreed upon in a distribution agreement. If necessary, it may also be agreed that the distributor shall see to registration of such marks in the name of the principal.

The distributor is often assigned an obligation to at a minimum report to the principal of violations of the principal’s industrial rights detected by the distributor. The parties may also agree in further detail the procedures for defending the principal’s rights. Usually, the distributor is required to assist the principal in the defense against violations.