In a dispute concerning an infringement of a franchising agreement in the food services industry, including an alleged violation of a non-compete clause, the Portuguese Supreme Court reversed a ruling of the Lisbon Appeal Court, providing clarifications on its view on the validity of such clauses under competition law. The first instance court had sentenced the franchisee to pay the royalties and supplies granted before the termination of the contract, but had not awarded compensation for the breach of the non-compete clause, reason for which the franchisor appealed the
The Portuguese Supreme Court declares a non-compete clause in a franchise agreement invalid due to absence of transference of confidential information justifying protection of know-how (Montijo)
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