Eleonora – IDI

BRAZIL: New Brazilian law promotes the freedom to contract on licensing and franchising and reduces government interference on royalty remittance overseas: what a foreign businessmen should know about it?

Posted on 15 March 2022 (14 April 2022)

The general understanding about the proposed changes is positive, since modernize and make more flexible the current applicable foreign exchange laws that deal with the local parties’ ability to make payments abroad, including royalties, and their ability to purchase hard currencies for complying with international financial commitments from business transactions. Among the changes, compensation of […]

CHINA: Disguising a true franchise? – Seeing through the appearances to perceive the essence.

Posted on 15 March 2022 (14 April 2022)

Some companies utilize different tactics or tricks to claim that they are not a franchise, not only because of the expense and time required for the preparation of a franchise disclosure document, but also trying to avoid a unilateral right enjoyed by franchisees to terminate the franchise agreement during the cooling-off period according to Article […]

UKRAINE: Force-majeure circumstances due to war in Ukraine.

Posted on 15 March 2022 (14 April 2022)

The relevant official letter of the Ukrainian Chamber of Commerce and Industry is placed on this link: https://ucci.org.ua/en/press-center/ucci-news/protsedura-zasvidchennia-fors-mazhornikh-obstavin-z-28-02-2022. Initially the force-majeure circumstances will last for 30 days. From the practical viewpoint, this means that the Ukrainian companies (agents, distributors, franchisees) may suspend performance under the relevant agreements referring to force-majeure circumstances. Anzhela Makhinova, IDI Country Expert for Ukraine […]

FINLAND: Be prepared for franchisee´s insolvency.

Posted on 15 February 2022 (14 April 2022)

Therefore, the franchisor should ensure that his financial claims with the franchisee are paid well in advance of the termination or avoidance of the franchise agreement. Subsequent to termination of the franchise agreement, the recovery of funds from the debtor often proves difficult. If your franchisee is subject to insolvency proceedings, such as reorganisation or […]

NORWAY: Use of competitors marks as “key-words” on search engines.

Posted on 15 February 2022 (14 April 2022)

1. The Facts of the case The legal issue was whether the appellee, Bank Norwegian, as s part of its marketing strategy, could use the claimants’ “distinguishing marks” as paid keywords in Google Ads. The claimants: Komplett Bank ASA, Ikano Bank AB (publ) – Norway Branch, and BRAbank ASA, were all other banks that offered […]

SPAIN: Distribution contract: it is not obligatory to disclose the customer list to the manufacturer at the end of the contract if not expressly agreed.

Posted on 15 February 2022 (20 October 2022)

In this case, both parties had signed a distribution contract. When the contract terminated, the manufacturer requested in court that the distributor disclose the list of customers. The Court of First Instance, nevertheless, refused this obligation as it was not provided for in the contract and it concluded that this did not constitute a breach […]

UK: UK’s proposed vertical restraints block exemption.

Posted on 17 January 2022 (14 April 2022)

The CMA is working on the new UK block exemption at the same time as the European Commission is consulting on revisions to its block exemption and guidelines. It is believed that both the new UK and the revised EU block exemption will enter into force at the same time. What can be expected from […]

CHINA: What does the new Personal Information Protection Law of China mean for cross-border franchising and distribution?

Posted on 17 January 2022 (14 April 2022)

China has reinforced its legal framework to protect its citizen’s personal information. On 20 August 2021, China’s much anticipated 《个人信息保护法》(Personal Information Protection Law (“PIPL”)) was passed. The new law came into force on 1 November 2021. The PIPL, 《网络安全法》(Cybersecurity Law) and the new 《数据安全法》(Data Security Law) (which came into force on 1 September 2021), now […]

NORWAY: The definition of a commercial agent – part III – The judgement from the EFTA Court.

Posted on 17 January 2022 (27 June 2022)

The conclusion of the Appeal Court, albeit somewhat unclear, was based on the understanding that Norep, in order to qualify as agent in accordance with the definition in the Agency Act, had to receive/obtain the orders from the customer and transmit those to the principal. As informed about in the previous articles, the case has […]

MEXICO: Franchises and the New Law of Transparency, Prevention and Elimination of Unlawful Practices in Advertising Services.

Posted on 15 December 2021 (14 April 2022)

This Law is intended to promote transparency in the advertising market, as well as to prevent and eliminate commercial practices constituting an unlawful advantage in favor of certain parties to the detriment of advertisers, and indirectly, consumers. The Law regulates interactions between “Advertisers”, “Media” and “Agencies” and its object is to limit the existence of […]

INDIA: The Competition Commission of India penalizes Maruti Suzuki India Limited for resale price maintenance.

Posted on 15 December 2021 (14 April 2022)

This case is relevant for distribution arrangements between manufacturers and their distributors concerning the price of products and discounts that can be offered by sellers to consumers. In the instant case, the CCI acted based on an anonymous email alleging that Maruti prohibited its dealers/ distributors from offering discounts beyond what was prescribed by it. The […]

EU – IRELAND: Software Incubator Ltd. v Computer Associates (UK) Ltd (C-410/19) – Implications under Irish Law.

Posted on 15 December 2021 (20 October 2022)

On 27 May 2019, the English Supreme Court referred the following question to the Court of Justice of the European Union (CJEU) for a preliminary ruling: Whether the supply, in return for payment of a fee, of computer software to a customer by electronic means where that supply is accompanied by the grant of a […]

TURKEY: Lack of franchisee’s independence against the franchisor shall lead the franchise agreement to be called as invalid.

Posted on 15 November 2021 (14 April 2022)

The merits of the case are as follows. The franchisor sub-leased the shop to the franchisee without obtaining the approval of the lessor (shopping mall) which shall be obtained according to the lease contract between the lessor and franchisor. Given the circumstances, apart from the franchise agreement, the franchisor and the franchisee signed an additional protocol, […]

NETHERLANDS: ACM imposes fine of almost 40 million euros on Samsung for influencing (resale) prices.

Posted on 15 November 2021 (14 April 2022)

In the opinion of the ACM, Samsung exerted undue influence on the online sales prices of televisions of seven retailers from January 2013 to December 2018. It follows from communications between Samsung employees and retailers that Samsung actively influenced retailers’ online sales prices during the infringement period and expected retailers to adhere to the prices […]

NORWAY: The definition of a commercial agent – part II.

Posted on 15 November 2021 (27 June 2022)

The conclusion of the Appeal Court, albeit somewhat unclear, was based on the understanding that Norep, in order to qualify as agent in accordance with the definition in the Agency Act, had to receive/obtain the orders from the customer and transmit those to the principal. The case has been brought before the Supreme Court. […]

FRANCE: Resale price maintenance and ban on online sales: the French Competition Authority fines eyewear brands and manufacturers.

Posted on 15 November 2021 (20 October 2022)

Luxottica, LVMH and Logo were accused of having included in their licensing or selective distribution agreements a mechanism for controlling prices and promotions applied by opticians. In particular, Luxottica allegedly distributed “recommended prices” to its distributors and encouraged them to maintain a certain price level. Luxottica disputed the existence of an agreement on prices on […]

POLAND: An attempt to regulate the franchise market in Poland.

Posted on 18 October 2021 (14 April 2022)

1. Attempting to regulate the franchise agreement by law (the statutory regulation of the franchise agreement). 1.1. In October 2020, at the request of the Ministry of Justice a report on franchising in Poland has been prepared. Its main scope was, inter alia, to indicate the directions in which the regulations on the franchise agreement […]

ROMANIA: The Romanian franchise law and the online Franchise Registry.

Posted on 18 October 2021 (14 April 2022)

1. Romanian legislation regarding franchise agreements Franchise agreements in Romania are regulated by Government Ordinance No. 52/1997 as amended and completed by Law No. 179/2019. One of the main amendments introduced by Law 179/2019 refers to the creation of the Franchise Registry by the Romanian Association of Franchise, association of public utility. The Franchise Registry […]

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