ALERTS : DISTRIBUTION - NON RE-AFFILIATION CLAUSE - VALIDITY

Non re-affiliation clause : The French Supreme Court validates the non re-affiliation clause which prohibits for a time period limited to one year the use of a known trade name within a radius of five kilometres from the store (ITM Entreprises)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. Facts The promoter of a large distribution network had inserted in the affiliation contract it had granted to a company a non-reaffiliation clause prohibiting the latter, in the event of termination, for one year and within a radius of five kilometres, from using a "sign of national or regional renown" and from selling related products. When the affiliation contract was terminated, the affiliated company sold its business to the promoter of a competing network, which then changed its name. After obtaining the conviction of the affiliate by the competent court of arbitration for breach of its contractual obligations, the network developer had sued the

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Dominique Ferré, Régis Pihéry, Non re-affiliation clause : The French Supreme Court validates the non re-affiliation clause which prohibits for a time period limited to one year the use of a known trade name within a radius of five kilometres from the store (ITM Entreprises) , 2 December 2008, Concurrences N° 1-2009, Art. N° 29584, www.concurrences.com

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