BRAZIL: Decision on the indemnity owed to the agent in case of unjustified termination of the agency agreement by the principal.

In the case submitted to the Court, the agent proceeded against the principal in order to obtain the indemnity in compliance with Article 27, J of Federal Law n. 4886/65, modified by Federal Law n. 8420/92. According to said Article, the amount of the indemnity due to the agent in case of unjustified termination by […]

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Principles of European Law on Commercial Agency, Franchise and Distribution Agreements.

General remarks. A main problem of these principles is that they try to set common rules for contracts that are substantially different, without making the necessary distinctions. In fact the contracts covered are: agency, franchising, exclusive distribution, selective distribution and exclusive supply, which have rather different economic functions and where the parties have rather different […]

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CHINA: Regulatory provisions for expanding Distribution Business Scope of Foreign Invested Non-commercial Enterprises.

The Notice refers to Order [2004] No. 8 of the Chinese Ministry of Commerce, issued on April 16, 2004 and effective since June 1, 2004 (‘Measures for the Administration on Foreign Investment in Commercial Fields’), which requires foreign investors to carry on agency and distribution activities through foreign-funded enterprises established in China. Particularly, according to […]

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FRANCE: Important decision of the Supreme Court on selective distribution.

The decision of the French Supreme Court (No. 02-10566 of January 11, 2005 – Auchan France v. Levi Strauss Continental) confirms the above mentioned principle and states that the third party, who sells the manufacturer’s products, without being a member of the network, commits an act of unfair competition against the manufacturer. The decision also […]

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A new case on the EC 653/86 Directive before the Court of Justice.

According to Article 1751 of the civil code, which implements Article 17(1) of the directive (‘German system’) the agent has right to indemnity if and to the extent that: he has brought new customers or has considerably increased business with the existing customers and the principal continues to derive substantial benefits from the business with […]

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New Law on Franchising in Italy. On May 6, 2004 the Italian parliament approved the first law on franchising contracts in Italy (Law No. 129 of 6 May, 2004).

The definition of franchising contracts includes any agreement between two parties, legally and economically independent among one another, through which, on the one hand, one gives to the other the right to use some of its intellectual and industrial property rights specifically indicated (e.g. trademarks, know-how, technical assistance), against compensation. On the other hand, the […]

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