| ICT Recht

Distributors have the market knowledge to penetrate a specific geographic region or serve a specific class of purchaser. The distributor or reseller buys the products wholesale (at a discount) and sells the products to its clients on its own account and risk.

The elements to be addressed in a distribution agreement are as follows:

• Which region is the distributor authorized to serve?
• Is the agreement an exclusive agreement, i.e. are other distributors allowed to operate in that region as well?
• What fee will the distributor receive and how is it determined?
• Is the agent permitted to offer minimum prices or are there discount limits?

• How should the distributor use the product brand name? Can a distributor register a domain name containing a brand name, for instance?
• Who will provide support and assist clients in the event there are problems with the products?

A distribution agreement specifically for software is possible as well. In legal terms, this is also referred to as a sub-licensing agreement. The distributor receives a license to sell licenses or sublicenses to purchasers. The distributor may also be authorized to grant licenses as an agent for the software producer.

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