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Intellectual Rights Contract breached

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  • 20-07-2016 10:39pm
    #1
    timple23
    Registered Users Posts: 1,001 ✭✭✭


    Hi, I was sourcing a manufacturer overseas and before order was placed a contract was drawn up stating that they could only supply me with the products and could not manufacture it or anything similar for others. Contract was signed by supplier

    There was one specific design feature which was covered, I have now discovered that they have supplied someone else with a product which includes the feature mentioned. The contract stated that financial penalties may be required if contract is breached. But does not state what penalties are.

    In an ideal situation I would like the products to be taken back off the market, or recalled by them. Is this possible? Or if not how wold i go about looking for financial reimbursement? They are outside the EU.


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    #2
    mrawkward
    Registered Users Posts: 498 ✭✭mrawkward


    What is the country of applicable law defined in the contract?

    If it is not the supplier's country/jurisdiction, you can probably "whistle dixie". If it is China, don't even bother. You may be able to defend/protect/exclude your design feature within the EU if you have appropriate IP protection in place and thus exclude the product from EU markets. Won't be cheap though!


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    #3
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    That post sounds very strange. Who drew up a contract that did not specify what penalties were involved for breach? What supplier would sign what sounds like a highly restrictive contract?


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    #4
    mrawkward
    Registered Users Posts: 498 ✭✭mrawkward


    pedroeibar1 wrote: »
    That post sounds very strange. Who drew up a contract that did not specify what penalties were involved for breach? What supplier would sign what sounds like a highly restrictive contract?


    All pretty standard stuff for sub-contract manufacturing gigs. Sadly most Irish lawyers insisit on Irish jurisdiction, which is worse than useless!!


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    #5
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    Not sure that I'd agree on Irish jurisdiction being worse than useless, it can be enforced within the EU. I agree with you on China and that it's standard difficulty/form on outsourced manufacturing there.
    Never ceases to amaze me the way some people sleepwalk their businesses into this type of problem, the cheapest is not always the most cost effective..


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    #6
    mrawkward
    Registered Users Posts: 498 ✭✭mrawkward


    Op says non-EU! Post #2 refers!


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    #7
    antoinolachtnai
    Registered Users Posts: 9,793 ✭✭✭antoinolachtnai


    What intellectual property rights do you think you have?

    You are talking about something really involved here, legally speaking. The clause in your contract may not be legally enforceable. It really depends on the facts and the jurisdiction, but I would not take it for granted that you have any right to dictate what future manufacturing contracts the manufacturer may or may not take in the future.

    You really need specialised advice as quickly as possible.


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