International exclusivity agreement

[butlerservice]

Hello UKBFers
I'd like to import certain exclusive products from Chinese and Indian companies. My worry is that my competition will track down my resources and try to take over my business. Therefore I'm thinking about setting up an exclusivity agreement with these companies for UK and certain EU territories.
My only worry is how applicable such an agreement is in court and if it has any legal meaning at all (especially with a business that is outside of the EU continent)
Does anyone has any experience on how this would work out?

Let's say X competitor tracks down Z company I'm working with. They are now distributing my exclusive products as well, is there any way I can legally enforce any penalty towards this other UK competitor for violating my agreement with Z company?

 

[Brennerz]

What type of product is it, how easy is it to copy? Why would they need to use the same manufacturer?

I think one of the problems you would have is trying to prove the Chinese factory sold your product to someone else. I imagine it would cost a fortune trying to prove it.

 

[GraemeL]

Forget any idea of exclusivity agreements with factories in Asia unless you have the means and the customer base to guarantee them massive volumes relative to the size of their factory. You would never be able to make a legal agreement stick in an Asian court. All that matters to the factory is how much business you can give them. If someone else can sell three times as much as you, what decision do you think they will make?
G

 

[MikeJ]

You can't sue the other company. They've not broken any law, and they're not party to any contract you have. You could sue the supplier, but that's not really going to get you very far unless you're willing to pay court fees in the asian country.

Your best bet is to develop and trademark a brand, and sell the products under that brand.

 

[butlerservice]

What about services for certain territories?

 

[GraemeL]

What about services for certain territories?

What about them? You have not said anything to comment on.

 

[butlerservice]

Can you let an Asian company exclusively deliver services for certain EU territories for a certain period of time?

 

[Maple Sourcing]

Find a trustworthy supplier at suitable size to match your order volume and your potential growth, it's the key.

I've worked for many years with many suppliers, for my own designs, all of them stick to work with me although there're chances that they could sell same products to other clients.

Meanwhile, other suppliers called me that they could offer me 10% discount if I move my orders to them, but I refused.

My point is, loyalty is mutual, if you show your loyalty and sincerity to keep business relationship with the supplier, they will show you their loyalty. --- The precondition is that it's a "trustworthy" supplier. I cannot work with dishonest people.

So, instead of spending time on establishing an ideal exclusivity agreement, I suggest you spend time on sourcing a good supplier.

 

[Brennerz]

As I said above, don't forget that regardless of which factory is used, a competitor can still easily copy your product!

 

[Ian J]

I recall that many years ago the factoring company that I was then working for was approached by three companies who all had the sole UK rights to the same product

 

[butlerservice]

Thank you all for your responses, they're greatly appreciated!