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International Union of Commercial Agents and Brokers (IUCAB)

International Union of Commercial Agents and Brokers (IUCAB). 1953 - 2006. WWW.IUCAB.NL. Council Directive 86/653/EEC of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial agent. Council Directive 86/653/EEC of 18 December 1986. (1)

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International Union of Commercial Agents and Brokers (IUCAB)

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  1. International Union of Commercial Agents and Brokers (IUCAB) 1953 - 2006

  2. WWW.IUCAB.NL

  3. Council Directive 86/653/EEC of 18 December 1986on the coordination of the laws of the Member States relating to self-employed commercial agent

  4. Council Directive 86/653/EECof 18 December 1986 (1) Member states shall take the measures necessary to ensure that the commercial agent is, after termination of the agency contract, indemnified in accordance with paragraph 2 of compensated for damage in accordance with paragraph 3

  5. Council Directive 86/653/EECof 18 December 1986 (2a) The commercial agent shall be entitled to an indemnity if and to the extent that: • He has brought the principal new customers or has significantly increased the volume of business with existing customers and the principal continues to derive substantial benefits from the business with such customers, and

  6. Council Directive 86/653/EECof 18 December 1986 (2a) The payment of this indemnity is equitable having regard to all the circumstances and, in particular, the commission lost by the commercial agent on the business transacted with such customers. Member States may provide for such circumstances also to include the application or otherwise of a restraint of trade clause, within the meaning of Article 20

  7. Council Directive 86/653/EECof 18 December 1986 (2b) The amount of the indemnity may not exceed a figure equivalent to an indemnity for one year calculated from the commercials agent’s average annual remuneration over the preceding five years and if the contract goes back less than five years the indemnity shall be calculated on the average for the period in question

  8. Council Directive 86/653/EECof 18 December 1986 (3) The commercial agent shall be entitled to compensation for the damage he suffers as a result of the termination of his relations with the principal.

  9. Council Directive 86/653/EECof 18 December 1986 (4) Entitlement to the indemnity as provided for in paragraph 2 or to compensation for damage as provided for under paragraph 3, shall also arise where the agency contract is terminated as a result of the commercial agent’s death.

  10. Council Directive 86/653/EECof 18 December 1986 (5) The commercial agent shall lose his entitlement to the indemnity in the instances provided for in paragraph 2 or to compensation for damage in the instances provided for in paragraph 3, if within one year following termination of the contract he has not notified the principal that he intends pursuing his entitlement.

  11. Council Directive 86/653/EECof 18 December 1986 (6) The Commission shall submit to the Council, within eight years following the date of notification of this Directive, a report on the implementation of this Article, and shall if necessary submit to its proposals for amendments.

  12. Report on the application of article 17 of Council Directive on the coordination of the laws of the Member States relating to self-employed commercial agents

  13. Italian Civil Code Article 1751Indemnity for contract termination At contract termination, the principal shall pay to the agent an indemnity if the following conditions are met: • The agent has brought new customers or has considerably increased business with the existing customers and the principal continues to derive substantial benefits from the business with such customers; • The payment of such indemnity is equitable having regard to all the circumstances and in particular the commission lost by the agent on the business with such customers

  14. England, Regulation nr. 17 • This regulation has effect for the purpose of ensuring that the commercial agent is, after termination of the agency contract, indemnified in accordance with paragraphs (3) to (5) below or compensated for damage in accordance with paragraphs (6) and (7) below • Except where the agency contract otherwise provides, the commercial agent shall be entitled to be compensated rather than indemnified.

  15. Block Exemption Regulationfor vertical agreements, 2790/1999,OJ L336/21 of 29 December 1999

  16. Distributorship Agreements

  17. ICC Distribution Model Agreement

  18. Block Exemption Regulation market share < 30%

  19. Hardcore restrictions • Resale price maintenance • Absolute protection of exclusivity(passive sales remain allowed) • Non-competition obligations exceeding five years • Post contractual non-competition obligations

  20. Block Exemption Regulation market share > 30%

  21. Thank you very much for your attention

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