Module 1 · Chapter 2

Exclusive Distribution: the Territory and the Trade Mark

An exclusive distributor gets an area to itself, and gives promises back. This chapter shows what each side promises, how long the law lets those promises last, and who owns the brand.

≈ 8 min read 8-question test

In this chapter

  • What “exclusive” means, and which few customers the maker keeps
  • How long a non-compete may last, during the deal and after it
  • How the deal protects the maker’s brand name abroad

2.1Exclusive distribution in one paragraph

In exclusive distribution, a supplier gives one distributor an area to itself. Here Cressby gives Ireland to Tullavane. Cressby promises to name nobody else there and to stay out itself, apart from a few hotel groups. In return, Tullavane sells no rival machines and uses the brand only as allowed.

Key point

Each promise has limits. Exclusivity can end if sales fall short. The law allows a ban on rival machines only for a set time.

Also in this chapter

  1. What “exclusive” promises, and what it does not
  2. Cressby’s own customers in Ireland
  3. The non-compete and how long it may last
  4. The trade mark
  5. Your job

Preview

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