Just as the distributor is expected to meet the minimum sales requirements, the manufacturer may also be required to meet the minimum product delivery requirements. Sometimes the distributor is also required to purchase a minimum order for the product. These minimum requirements are based on forecasts that are regularly published at regular intervals throughout the agreement, at regular intervals and under certain conditions. „For the duration of the agreement, the distributor has the right to publicly demonstrate that it is an authorized distributor of the manufacturer`s products. The manufacturer is authorized by the manufacturer to promote products in the area under the manufacturer`s trademarks, service marks and trade names, which it may accept from time to time („manufacturer`s trademarks“). None of this grants the distributor a right, property or interest in the manufacturer`s trademarks. At no time during the duration of this agreement or at any time after that, the distributor will not seek or assist others in challenging the trademarks or their registration or attempting to register trademarks, service marks or trade names that are confusing with those of the manufacturer. The manufacturer releases distributors for the use of manufacturers` brands. A non-exclusive appointment is opposed to an exclusive appointment. It allows the manufacturer to have multiple distributors for the same product. The domain is still being tendered and the distributor needs to know where it can sell and market the product.
However, a non-exclusive appointment for a distributor can lead to competition within the distribution network. E. The performance of this distribution agreement by the company and the performance by the company of its obligations and obligations under this agreement are not contrary to an agreement to which the entity is a party or to which it is bound by other commitments and sub-agents. The distributor may designate sub-agents, negotiators, sub-representatives or others who act on behalf of the distributor or otherwise fulfill the distributor`s obligations under this agreement within the territory; provided that (i) any compensation for these sub-agents, sub-agents, sub-representatives or other persons, to act on behalf of the distributor or to discharge any other of the distributor`s obligations, is exclusively the responsibility of the distributor, and (ii) that appointment does not deprive the entity of the essential rights to which it is entitled under this Agreement. An agreement with this sub-agent, negotiator, deputy representative or any other person does not exceed the duration of this agreement. Suppliers who use channel partners as part of their distribution network can use a one- or two-step distribution channel. In a one-step distribution system, the provider develops relationships with channel companies such as VARs, System Integrators (SIs) and Managed Service Providers (MSPs) — which sell to end customers. In a two-tier system, the supplier sells products to an independent distributor who in turn supplies products to channel partners who then package solutions for end customers.
The two-step model requires dealer agreements to facilitate relationships between distributors and channel partners. The competition clause is an important clause in some distribution agreements.