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)

Sousa Ferro, Miguel

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8 Oct 2013

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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Reference

Portuguese Supreme Court, Montijo franchise agreement, 8 October 2013

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

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Author

Miguel Sousa Ferro
Eduardo Paz Ferreira & Associados (Lisboa)

Portugal 17 contributions 9745 visits

Quotation

Miguel Sousa Ferro, 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), 8 October 2013, e-Competitions Franchising, Art. N° 61108

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