Find out which goods or services are included in the terms of the agreement. Indicate the minimum recommended selling price for all goods or services listed in the clause. The buyer must be prepared to pay this price for the product during the term of the contract. Arrange a meeting between the two parties and discuss the terms of the exclusive supply agreement. For example, the exact specifications of the product or service to be provided, the amount of funds to be paid to fulfil the terms of the agreement and the date on which the contract is legally binding. In the absence of an exclusivity clause, the seller may not see the benefit of selling or promoting only a company`s products or services. In the blogging example used above, it may seem unafforded that the blogger posts in a short time about similar products and/or services, causing potential customers to ignore suggestions. Without an exclusivity clause, the company cannot guarantee the loyalty of its partners. The next section should concern the party that supplies goods or services exclusively for the other.

Mention that, during the term of the contract, the seller is not allowed to promote, sell or request the product from other parties. Also describe the fact that the buyer cannot buy the product from another supplier. They may also be limited to buying or selling goods for a certain period of time, depending on the terms of the agreement. Exclusivity agreements between franchisors and franchisees are often stricter than between other parties. Before you sign anything, negotiate the terms until you feel comfortable with what you`ve committed to by signing the agreement. One of the great advantages of IP rights over contractual non-compete clauses is that the latter can be subject to much more invasive regulatory restrictions. In English law, non-competition rules are governed by competition law (including ordinary law restrictions of commercial doctrine). Non-competition rules should always be formulated with regard to competition law. In some cases, you should use the vertical agreement block exemption to ensure that your clauses and contracts are protected against EU competition law. However, an order manufacturing relationship also carries risks for both parties. Does the trademark holder want to pay the contract manufacturer to develop these production capabilities when the manufacturer turns around and uses those capabilities to develop products that compete with the trademark owner`s products? Exclusive purchase agreements that require a distributor to sell the products of a single manufacturer may have a similar impact on a new manufacturer and prevent it from placing its products in a sufficient number of outlets to allow consumers to compare its new products with those of the first manufacturer.

Exclusive purchase agreements may infringe anti-cartel rules when they prevent new entrants from competing with sales. For example, the FTC found that a producer of tube or pipe fittings had unlawfully maintained its monopoly on domestically manufactured ductile fittings by requiring its distributors to purchase domestic tube or pipe fittings exclusively from it and not from its competitors attempting to enter the domestic market. . . .