A Contractual Agreement Whereby One Company

The licensee may not be fully related to the licensee`s product or technology. Lack of enthusiasm can certainly affect the success of a product in a foreign market, so beware if you see low or non-existent sales growth! Don`t encourage a future competitor either. It would be easy for a company to run with your product or your service idea. Be sure to work with an international lawyer to protect your property and intellectual property for a long time from waterproofing a deal. The dominant company instructs the subsidiary on fundamental issues such as governance, setting targets, coordinating business activities and appointing high-level management and does not disrupt the day-to-day operations and operation of the subsidiary. The group`s companies are regulated for the first time under Turkish Code of Commerce No. 6102 (“TCC”). Although there is no definition of group companies, their types and principles are expressed in the CBT. Group companies are created when there are more than two commercial enterprises directly and indirectly linked to a commercial enterprise or business. In such cases, the parent company represents the dominant company and the companies dependent on the subsidiaries. The existence of group companies may result from a control agreement between the companies. The control agreement between the dominant company and the subsidiary achieves the group`s useful objective by creating a single management structure.

Here`s an example of real life. Many years ago, when I worked in a small chemical cleaning company, we made a crystal chandelier cleaner into a 14-ounce aerosol can and a 32-ounce plastic bottle. Our customer in Sweden bought both products and we downloaded as many as possible in a 20-foot container to maintain the flat-rate shipping costs. Our client thought that the more it mattered, the lower its price per unit (that`s the right thought, by the way). The subsidiary, which is no longer managed by its own bodies, is managed and controlled by another company and is therefore subject to a control agreement which must be submitted to the general meeting for approval. Licensing can also be done for the use of a trade name, for the distribution of imported products and for a service. 7-Eleven is considered the leader in licensing the convenience industry and signed its first licensing agreement in the United States in 1968. In 1983, First Circuit confirmed a series of contracts in which Grinnell agreed to purchase a significant portion of Grinnell`s expected demand for Snubbers, which are safety devices used in nuclear facilities, from Pacific Scientific. Barry Wright, a competitor Snubber producer, sought damages from Pacific (which historically held an 80% share of the Snubber market) under Section 2 of the Sherman Act.

Barry Wright characterized the contracts as exclusive agreements that effectively prevented him from selling Snubbers to Grinnell, who bought about fifty percent of the Snubbers. The Tribunal upheld the agreements in which it stated that “the courts had judged the legality of [exclusive trade] not in itself, but on the basis of a “basic rule” (38), and stated that the relevant investigation was “if the size of the sales contract was appropriate” (39) with respect to “both the extent of the forced execution and the commercial justifications of the buyer and seller.” (40) The Tribunal found that Grinnell`s wish to have “a stable source of supply” and “a stable and cheap price” (41) – the longest covering a period of two and a half years – and the existence of “legitimate commercial justifications” (42) – justified – Grinnell`s desire for “a stable source of supply” and “a stable and favourable price” and Pacific`s desire to participate in “production planning, which is probably a lower cost.” (43) In accordance with Article 106/2 of the Regulation, control agreements must be approved by the general meeting of the subsidiary in order to obtain their validity. and then recorded and announced.