What Is Territorial Agreements
Under Sherman`s Law No. 1, a territorial agreement that combines geographic areas with competitors may constitute a horizontal restriction on trade. In a horizontal territorial agreement, competing companies enter into an agreement to prevent competition or break another competitor in an exclusive geographic area. The non-competition agreement is generally a mere restriction of trade, which has no favourable justification for competition. As such, it is in itself illegal under the Sherman Act. An irrevocable, unlimited and under-granted international license, a non-exclusive global license for the use of Genzyme [-] process of manufacturing a split-territory agreement in such a split-territory agreement, for which the DAC has authorized a choice of processes in accordance with Section 4.7.1 ([[)] Process Election for TerritAbilment Agreement Products). Based on the Split Territory Agreement Product-by-Split Territory Agreement, DAC can use the Genzyme process to manufacture such a split-territory agreement prior to the manufacture of a collaborative split-territory product used in a clinical trial for human POPs. If such a terminated contractual program is a split territory agreement program and such a termination of Genzyme is carried out in accordance with Section 16.2.1 (Termination of the Convenience Contract) or under Section 16. 2.3 (Automatic Termination of The Collaboration Program), Genzyme granted to Voyager Voyager`s application The licence requirement under the above clause (a) will be subject to a licence for the term of the licence applicable to each Split Territory Agreement in any country of the territory of Genzyme , and after the term of the license applicable to this split-territory agreement in that country, transformed into an exclusive license fully paid to market this Split Territory Agreement on the ground in that country.
Example: ABC Steel Inc. and 123 Steel Inc. are major steel suppliers in the United States. They agreed to allow ABC access to all of Northeast and California, while 123 are licensed to serve the rest of the United States. Each company undertakes not to sell on the territory of the other. This would be a simple restriction of trade without obvious competitive justification. The original overall split development plan for each split territory agreement product is included in the options package for such a split-territorial agreement made available by Voyager Genzyme in accordance with Section 3.2.1 (option notification); Data package option). Practical question: ABC Steel and 123 Steel are two of the industry`s leading suppliers. ABC regularly proposes around 123 to supply steel in most major construction projects across the country. ABC and 123 reach an agreement that ABC will not bid for projects east of the Mississippi River and 123 for projects in the West.
Are there any legal problems with this agreement?.