A distribution arrangement can be a great way to launch your products in a new territory or sector. A distribution agreement works between the manufacturer and supplier of goods. The manufacturer will enter into an agreement with a supplier and the supplier will sell the goods on behalf of the manufacturer. A good distributor will have a firm knowledge of the territory in which you wish to operate and the products you want to sell.
The distribution agreement is critical in providing you with the comfort to allow your products to be sold by a third party. A good distribution agreement will provide you with protection against infringement of your intellectual property rights, representations you are unable to honour and where appropriate failure to install your product properly.
A distribution agreement is a type of ‘vertical agreement’ and therefore subject to European law. For that reason it is important that you engage a solicitor familiar with this area of law otherwise you may find your agreement is unenforceable.
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