The company Yves Saint Laurent Parfums had granted a Venezuelan company an exclusive license to distribute its products in Venezuela. Following the licensor’s termination of the license agreement, the licensee accused it of not having taken action against other distributors that were ignoring the exclusive rights granted. In ruling that ‘the supplier is obliged to enforce the exclusive rights it assigns,’ the Commercial Chamber of the Cour de Cassation (Cour de Cassation, Commercial Chamber, February 20, 2007, Case no. 04-17.752) considered that exclusive distributors can hold the licensor liable if, disregarding its obligations, it does not take action against unauthorized resales made by a network distributor.
Didier Ferrier, IDI Country Expert for France.