Exclusive Marketing Rights Agreement

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A manufacturer does not always have a team with the necessary resources to get its product to market. A marketer can enter into a marketing rights agreement with the manufacturer and profit from product sales. An exclusive marketing rights agreement allows for the marketer to serve as the only go-through point for wholesalers and retailers to obtain the product.

Parties and Terminology

Typically, one of the first priorities of establishing an exclusive marketing rights agreement is to define the parties involved, their role(s) in the agreement and their full contact information. Key department heads of a company may be listed, in addition to the attorneys involved in creating the agreement. All agreements include a list of definitions of the key words used within the agreement.

Financial Agreements

An exclusive marketing agreement must cover all financial aspects and define who is responsible for each. The agreement details the marketer’s cost per unit and may include a list of price breaks based on order quantity. It also defines who is responsible for shipping costs, insurance, particular taxes and promotional costs.

Marketing and Promotion

A well-written agreement protects the intellectual property rights of the owner but still allows the marketer to use product logos and names for promotions. The U.S. Department of Commerce notes that owner’s rights may be in the form of patents, copyrights, trademarks and trade secrets. An exclusive marketing rights agreement is set up to allow the marketer to use product branding for marketing, advertising and other promotional activities.