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PARALLEL IMPORTS AND TRADEMARK PROTECTION

PARALLEL IMPORTS AND TRADEMARK PROTECTION Protecting distribution networks against parallel imports: the point of view of business. BasicNet S.p.A. headquarters in Turin quoted on the Italian Stock Exchange www.basic.net

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PARALLEL IMPORTS AND TRADEMARK PROTECTION

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  1. PARALLEL IMPORTS AND TRADEMARK PROTECTION Protecting distribution networks against parallel imports: the point of view of business 12 June 2010 Veerle Bouckaert Licensing Administration & Legal Affairs

  2. BasicNet S.p.A. headquarters in Turin quoted on the Italian Stock Exchange www.basic.net The BasicNet Group is a major participant in the sector of branded leisurewear and sportswear, footwear and accessories

  3. THE TRADEMARKS

  4. LICENSING • LICENSING FOR DISTRIBUTION • LICENSING FOR SOURCING

  5. LICENSING FOR DISTRIBUTION (LICENSEES) DISTRIBUTION AND LICENSE AGREEMENT • licence of right to use the trademarks • license of right to use the know-how

  6. LICENSEES TRADEMARKS right to use certain trademarks for certain products to be sold in certain countries limited to the Channel of Distribution KNOW-HOW a package of substantial practical information resulting from experience and testing and constantly developed by the BasicNet Group and relevant for the proper use of the trademarks: - design, production specification and sourcing of the products, - presentation and sale of the products, - marketing communication and customer management, - administration, logistic and financial management. EXCLUSIVENESS

  7. LICENSING FOR SOURCING (SOURCING CENTERS) SOURCING AGREEMENT • Right to use certain trademarks for manufacturing certain products to be sold to the licensees appointed by the BasicNet Group

  8. INFORMATION FLOW SALES REPORTS and AUDITING LICENSEES: • Sales and royalty reports • Information on stocks • Information on customers • Yearly Financial Statements • Annual certification of the Net Turnover • Right to audit the accounts of the licensees SOURCING CENTERS: • Ordering process by the licensees through the website • Sales and sourcing commission reports • Annual certification of the Net Turnover

  9. NOTIFICATION OF PARALLEL IMPORTATION • LICENSEES • CUSTOMS • JUDICIARY POLICE • LOCAL ENTITIES and INTERNATIONAL ORGANIZATIONS

  10. ORIGIN OF PARALLEL IMPORTATION • LICENSEES • International Distribution Networks • Stock • Internet • SOURCING CENTERS • Cancelled orders • Overproduction • Seconds

  11. PREVENTION LICENSEES & SOURCING CENTERS • contractual terms limitation of the local production limitation of licensor’s liability • limitation of the sources • pricing • monitoring of purchases and sales • identification of the source CUSTOMS CONTROL • authorised manufacturers, importers, distributors • information on products and product identification

  12. REMEDIES • CONTRACTUAL TERMS • CO-OPERATION AMONG THE LICENSEES OF THE NETWORK • CO-OPERATION LICENSEES AND THE RETAILERS

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