renewal of brand user agreement

Querist : Anonymous (Querist) 27 July 2010 This query is : Resolved
We are manufacturers of Packaged Drinking Water situated our Industry at Andhra Pradesh. and we got some reputed brand user agreement Andhra Pradesh Territory (non-exclusive basis) at 2007 April 23 renewal date at 2010 April 22nd. we are waiting for renual. the brand owner simply passing time'like wanted to discuss new terms and conditions' now they are telling simply already agreement lapsed, some others alredy got it. and one more news we got, that is they are given some others, same brand user agreement at 2009 March now only they told me. now what can be posible. we are invested huse amounts in this industry with their specifications. now we are struggling so much. how i can get neual? is there any posiblities. the brand owner cheated me.
here with attached agreement text.

Follow Query

Report Abuse

Daksh (Expert) 08 October 2010
Dear Anonymous,

More than legal your query is more on the business side. Once initially settling the terms there has to be a clause for extending the duration of the Agreement - failing which nothing much can be done now.

Regards

Daksh

R.Ramachandran (Expert) 08 October 2010
From the agreement it is seen that the licence has been granted on a "non-exclusive basis". This means, during the same period, the licence can be granted to more than one person.

Clause 7 of the Agreement states that the User is aware that “X” reserves the right to withdraw the license to use the Brand at any time and that the revocation of the authorization under the present a agreernent will not affect the business of the User. The User shall neither be entitled to claim any right to use the Brand nor any damages for such withdrawal of licence.

Clause 20 states that The Agreement shall come into force from the date of execution of this Agreement in shall remain in force for a period of three years. However, the same may be renewed in writing and for such further periods as agreed by the parties.

Thus, if the agreement has not been renewed the licensee cannot complain.

This is one of the reasons why adequate care and caution should be taken while entering into any agreement and more so commercial agreements.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now