Category Archives: Politics Law Society

Politics Law Society

.Inc for Inc.

Inc-Domains mirror exactly the name of your company

.Inc for Inc.

Website marketing with an excellent .inc domain name can improve the performance of a company (Source: gemeinfrei)

Inc. is – in addition to the LLC – one of the legal forms for a company in the USA. In its design, Inc. depends on the legal regulations of the individual US states.

The registry explains some details about .inc:
-In the US alone, there are over 5 million active incorporated businesses
-95% of active incorporated businesses are defined as SMBs
-75% of all legally formed businesses in the US are incorporated
-Businesses in over 20 major countries, including the United States, Canada, Australia, Japan, China, and India use „inc“
-An additional 900,000 new businesses are incorporated in the US every year

With the help of an .Inc-Domain the name of a company can be represented exactly as a domain: companyname.inc. This creates a very noticeable and memorable domain name. The memorability of the address of a website is the key to successful website marketing.

The Sunrise Period of the .Inc domain starts on March 7th and ends on April 30th. Interested parties for the Sunrise Period must register their trademark at the Trademark Clearinghouse .

The Sunrise period of the Inc-Domains is followed by the Early Access Period period, which begins on April 30 and ends on May 7. The General availability of the Inc-Domains will start on May 7, 2019.

The relationship between a better ranking in search engines and new top-level domains has already been proven in a study of Searchmetrics for .berlin domains. Websites with .berlin domains often rank better with regional searches in Google than sites with .de domains and .com domains.

In 42% of searches, .berlin domains rank better locally.

Another study by Total Websites in Houston shows that the results of the Searchmetrics study are in principle applicable to all new TLDs, including e.g. new Inc-Domains and LLC-Domains. Total Websites notes that Google sees the domain extensions of new TLDs as an important criterion for the evaluation of a domain and, therefore, concludes that:

It’s clear that the new top-level domains improve the ranking in search
engines.

Marc Muller

http://www.domainregistry.de/Inc-domain.html
http://www.domainregistry.de/llc-domain.html
http://www.domainregistry.de/ltd-domains.html
http://www.domainregistry.de/gmbh-domains.html

Abdruck und Veroeffentlichung honorarfrei! Der Text
kann veraendert werden. Weitere gemeinfreie Fotos können angefordert werden.

Secura GmbH ist ein von ICANN akkreditierter Registrar für Top Level Domains. Secura kann generische Domains registrieren, also z.B..com, .net etc. und darüber hinaus fast alle aktiven Länder-Domains registrieren.

2018 zählte die Secura GmbH bei dem Industriepreis zu den Besten. Secura gewann 2016 den Ai Intellectual Property Award „als Best International Domain Registration Firm – Germany“. Beim „Innovationspreis-IT der Initiative Mittelstand 2016“ wurde Secura als Innovator qualifiziert und wurde beim „Innovationspreis-IT der Initiative Mittelstand 2016“ im Bereich e-commerce auch als einer der Besten ausgezeichnet. Beim Innovationspreis-IT der Initiative Mittelstand 2012 und beim Industriepreis 2012 landete Secura GmbH unter den Besten. Beim HOSTING & SERVICE PROVIDER AWARD 2012 verfehlte Secura nur knapp die Gewinner-Nominierung.

Seit 2013 ist Secura auch bei den Neuen Top Level Domains sehr aktiv. Secura meldet Marken für die Sunrise Period als Official Agent des Trade Mark Clearinghouse an.

Kontakt: Secura@domainregistry.de
http://www.domainregistry.de

ICANN-Registrar Secura GmbH
Hans Peter Oswald
Frohnhofweg 18
50858 Köln
Germany
Phone: +49 221 2571213
Fax: +49 221 9252272
secura@web.de
http://www.domainregistry.de
http://www.com-domains.com

Contact
Secura GmbH
Hans-Peter Oswald
Frohnhofweg 18
50858 Köln
Phone: +49 221 2571213
E-Mail: secura@domainregistry.de
Url: http://www.domainregistry.de

Politics Law Society

ECJ – Distinctive character necessary for registration as EU trade mark

ECJ – Distinctive character necessary for registration as EU trade mark

ECJ - Distinctive character necessary for registration as EU trade mark

For a sign to be capable of being registered as an EU trade mark, it must be distinctive across the entire European Union. This was confirmed by the Court of Justice of European Union (ECJ) in a ruling from 25 July 2018.

According to the ECJ“s case law, a sign lacking original distinctive character can only be registered as an EU trade mark if it has acquired distinctive character in the part of the EU where it previously lacked this quality. The relevant part of the EU may consist of a single member state. We at the commercial law firm GRP Rainer Rechtsanwälte note that for the purposes of registering such a mark, it is not enough to demonstrate that it has acquired this distinctive character across a significant portion of the EU.

It is in light of this that the European Union Intellectual Property Office (EUIPO) must now re-examine whether the registration of the three-dimensional shape of a chocolate bar as an EU trade mark ought to be upheld following a ruling of the ECJ from 25 July 2018 (Az.: C-84/17 P). The EUIPO had registered the sign as an EU trade mark as early as 2006. Another food producer requested that the mark be declared invalid but to no avail. The EUIPO rejected the request, reasoning that the mark had acquired distinctive character by virtue of its use within the EU.

However, the General Court of the European Union overturned this decision in late 2016, ruling that the necessary distinctive character had only been demonstrated with respect to part of the European Union but not in relation to the rest of the relevant public. The EUIPO and the trade mark owner were skeptical of whether it is necessary for the owner of a trade mark to demonstrate distinctive character with regard to each and every member state, arguing that this is not consistent with the principle of uniformity of EU trade marks or indeed the single market.

The ECJ has since reaffirmed the Court“s decision in a recent ruling, stating that while it is not necessary to prove that the mark in question has acquired distinctive character through use in relation to each and every member state of the EU, the evidence presented must be capable of demonstrating that distinctive character has been acquired in all member states where the sign previously lacked original distinctive character. It now falls to the EUIPO to adjudicate once again on the registration of the mark.

Lawyers who are experienced in the field of intellectual property law can advise on all matters pertaining to trade mark registration and protection.

https://www.grprainer.com/en/legal-advice/ip-law/trademark-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

ECJ on the protection of geographical indications of origin

ECJ on the protection of geographical indications of origin

ECJ on the protection of geographical indications of origin

As in the case of trade marks, it is similarly possible to protect geographical indications of origin (GIOs). A decision of the ECJ from 19 December 2018 shows that this protection can be extensive (Az.: C-367/17 S).

Consumers may associate GIOs with a certain quality. We at the commercial law firm GRP Rainer Rechtsanwälte note that it is therefore possible to protect them in a similar manner to trade marks.

The label „Schwarzwälder Schinken“, i.e. Black Forest ham, is a protected geographical designation. An organization submitted a request to the German Patent and Trade Mark Office to have this protection extended so that Schwarzwälder Schinken can only be sliced and packaged in the Black Forest to ensure its quality. The organization took action against a producer that had its ham produced in the Black Forest but further processed elsewhere. The dispute ultimately came before the ECJ.

The ECJ held that a prohibition on further processing outside of the area covered by a GIO can be justified if this is a necessary and proportionate measure to ensure the quality of the product or guarantee its origin. It went on to state that whether further processing the ham outside of the Black Forest potentially compromises its quality must now be ruled on by Germany“s Bundespatentgericht.

Lawyers who are experienced in the field of IP law can offer advice.

https://www.grprainer.com/en/legal-advice/ip-law/trademark-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

BAG – Employers can claw back bonus payments

BAG – Employers can claw back bonus payments

BAG - Employers can claw back bonus payments

The Bundesarbeitsgericht (BAG), Germany“s Federal Labour Court, confirmed in a recent ruling that employers can claw back collectively agreed bonus payments from employees under certain circumstances.

It is common for employment contracts to include provisions on collectively agreed bonus payments, for instance when employers promise to pay a Christmas bonus. We at the commercial law firm GRP Rainer Rechtsanwälte note, however, that an employee“s entitlement to receive this annual bonus payment can be made conditional on the employment relationship continuing until a cutoff date outside of the reference period for payment in the following year. This position was reaffirmed by the Bundesarbeitsgericht in a ruling from 27 June 2018 (Az.: 10 AZR 290/17).

In the case in question, the employment contract stipulated that the employee was entitled to receive a collectively agreed yearly bonus payment on the 1 December. The contribution was also meant to serve as remuneration for work that had been performed. The contract further stated that the employee was to repay this bonus payment if he or she leaves the employment relationship during the period ending on 31 March of the following year through their own fault or of their own volition. In this case, the employee had terminated the employment relationship in October, in due time for this to take effect from January 2016. His employer paid out the agreed bonus to him on 1 December in the amount of one month“s wages and after the employment relationship was terminated demanded it be repaid. The employee refused to repay the bonus, arguing that the relevant tariff provision was invalid, disproportionately restricted his scope for terminating the employment relationship and breached his fundamental right to choose and pursue a professional activity.

The Bundesarbeitsgericht nonetheless held that the employer was entitled to repayment of the bonus, ruling that such a provision would be considered invalid if it were firmly established as a clause in the general terms and conditions of the employment contract and placed the employee at an undue disadvantage. The BAG clarified that the content of tariff wage agreements incorporated in their entirety into employment contacts, on the other hand, is not subject to this kind of review.

The Court found that the employee“s obligation to repay the amount arose from a provision in a tariff wage agreement concerning a cutoff date and did not violate any superior rule of law. The BAG noted that while the result amounted to a restriction on the employee“s freedom to choose and pursue a professional activity, this restriction was proportionate.

Lawyers who are experienced in the field of employment law can advise employers in relation to both individual and collective employment law.

https://www.grprainer.com/en/legal-advice/employment-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

M&A – Tighter rules for foreign investors entering German market

M&A – Tighter rules for foreign investors entering German market

M&A - Tighter rules for foreign investors entering German market

While corporate mergers and acquisitions boomed in 2018, investors from outside of the EU will now have a more difficult time joining or acquiring German businesses.

At the end of 2018, the German federal government passed an amendment to the Außenwirtschaftsverordnung (AWV), Germany“s Foreign Trade and Payments Ordinance. We at the commercial law firm GRP Rainer Rechtsanwälte note that its core function was to tighten the rules for foreign investors from outside of the EU entering the German market via German companies.

The amendment to the AWV concerns sensitive sectors of the economy such as defence and critical infrastructure, including e.g. telecommunications, IT security, the provision of drinking water, payment transactions, power, health services, transport and software. The federal government now has a right of veto over these sectors if an investor wishes to acquire a ten per cent stake in a German business. The threshold was previously set at 25 per cent.

It should be noted, however, that the lowering of the threshold for assessment only applies to sensitive sectors, as there is a desire for Germany to remain an attractive location to foreign investors for M&A transactions. Critics are nonetheless worried that foreign investors will be put off by these stricter rules.

Investors and entrepreneurs can turn to lawyers who are experienced in the field of M&A.

https://www.grprainer.com/en/legal-advice/ma.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

OLG Frankfurt – Selective prohibition on sale of luxury items online allowed

OLG Frankfurt – Selective prohibition on sale of luxury items online allowed

OLG Frankfurt - Selective prohibition on sale of luxury items online allowed

A supplier of luxury perfumes is allowed to prohibit its distribution partners from promoting and selling its products online via third party platforms. That was the verdict of the Oberlandesgericht (OLG) Frankfurt, the Higher Regional Court of Frankfurt.

The OLG Frankfurt“s decision was preceded by a preliminary ruling of the Court of Justice of the European Union (ECJ). We at the commercial law firm GRP Rainer Rechtsanwälte can report that the ECJ“s ruling from the end of 2017 found that a selective distribution system for luxury items designed primarily to safeguard a luxury image is allowed and does not violate the prohibition on cartels under EU law (Az.: C-230/16). In a judgment from 12 July 2018, the OLG Frankfurt applied the ECJ“s guidelines to its case.

The plaintiff in the case in question sells branded cosmetic products in Germany, and the defendant was one of the plaintiff“s authorized retailers (specialist dealers) required to comply with certain quality standards when selling the relevant products. The defendant sold the products in a brick-and-mortar store, on its online shop as well as on „amazon.de“. The point of contention concerned the sale of the products via the third-party vendor. The parties had agreed, among other things, that involving a third-party company in selling the products online was not allowed unless express permission had been granted in relation to said company. The relevant clause was revised to allow for selling online so long as the products“ luxury character remained intact. Any discernible involvement of a third-party company not among the authorized specialist dealers was expressly forbidden.

The defendant failed to sign the amended clause and continued selling the goods on Amazon, much to the annoyance of the plaintiff. The OLG Frankfurt granted the manufacturer“s action, ruling that the latter is allowed to demand that its products not be sold via third-party platforms such as Amazon. The Court went on to note, however, that this does not cover collaborations purely concerned with advertising, whereby the customer is redirected to the retailer“s online shop.

The supplementary agreement regarding the sale of the goods online was found to be an integral part of a qualitative selective distribution system. The OLG held that restrictions of this kind are allowed if they are necessary to safeguard the luxury image of goods whose quality is not based solely on their physical characteristics but also their prestigious image that lends them their luxury appearance and features.

Lawyers who are versed in the fields of competition law and antitrust law can offer advice in the event of disputes between dealers and companies.

https://www.grprainer.com/en/legal-advice/antitrust-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

Antitrust violations – BGH bolsters the rights of aggrieved parties

Antitrust violations – BGH bolsters the rights of aggrieved parties

Antitrust violations - BGH bolsters the rights of aggrieved parties

In a ruling from 12 June 2018, the Bundesgerichtshof (BGH), Germany“s Federal Supreme Court, has facilitated the enforcement of damages claims in response to violations of antitrust law with respect to the statute of limitations for claims (Az.: KZR 56/16).

Cartel members obtain advantages from illegal cartel arrangements that can prove to be costly for other market operators. If fine proceedings are initiated in response to a cartel, this results in the suspension of the statute of limitations for damages claims. The suspension is lifted six months after a final decision has been reached in relation to the fine proceedings. This statutory regulation came into effect in July of 2005. It was disputed whether the statute of limitations is suspended if the antitrust violation occurred prior to the new statutory regulation coming into force, but the damages claims had not yet become time-barred by July 2005. We at the commercial law firm GRP Rainer Rechtsanwälte can report that the Bundesgerichtshof has since clarified that the rule in question also applies to these cases and that the statute of limitations shall be suspended accordingly.

The case before the BGH concerned the so-called „cement cartel“. The cartel members had entered into agreements over a period of years and violated antitrust law. A fine was imposed against them in 2003, but it was another ten years before the fine notice became final following a ruling by the Cartel Panel of the BGH. A building materials dealer sued a cement manufacturer for damages, claiming that it had been made to pay inflated prices for cement. The BGH had to rule on whether the claims for damages had become time-barred after the lower courts reached different rulings.

The Cartel Panel held that the claims had not yet become time-barred. It stated that the new statutory rule that came into force on 1 July 2005 is equally applicable to cases in which the antitrust violation occurred prior to 1 July 2005 and the claims for damages had not yet become time-barred by this point in time.

The BGH“s judgment is a landmark decision that can be applied to a large number of other cases concerned with damages claims arising from violations of antitrust law. Lawyers who are experienced in the fields of antitrust law and competition law can advise businesses and enforce or fend off claims arising from violations of either antitrust law or competition law.

https://www.grprainer.com/en/legal-advice/antitrust-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

FG Baden-Württemberg on a municipality“s input tax deductions

FG Baden-Württemberg on a municipality“s input tax deductions

FG Baden-Württemberg on a municipality"s input tax deductions

In a ruling from 18 October 2018, the Finanzgericht (FG) Baden-Württemberg, the Fiscal Court of Baden-Württemberg, held that whether a municipality is operating as a commercial entity and entitled to deduct input tax depends entirely on the type of activity and the particular circumstances of a given case (Az.: 1 K 1458/18). We at the commercial law firm GRP Rainer Rechtsanwälte can report that the lawsuit was filed by a climatic spa.

The spa was an owner-operated municipal enterprise treated as a commercial enterprise for the purposes of corporation tax. Revenue subject to sales tax, e.g. from visitor“s tax and input tax, was declared in VAT returns. The input tax amounts were then reduced by the tax authorities.

And rightly so, according to the Finanzgericht: the municipality was found to be operating as a commercial entity entitled to deduct input tax to the extent that it charges third parties for access to a spa house for the purposes of restoration and hosting events. The Court went on to state, however, that it was not deemed to be a commercial entity insofar as it provides services to spa guests in the form of parking facilities, footpaths etc. The use of these amenities is governed by public law and the amount of visitor“s tax is not based on the level of investment in municipal infrastructure. The Court also noted that there was no direct link between the expenses incurred constructing, maintaining and operating the facilities in question and the economic activity associated with running a spa.

https://www.grprainer.com/en/legal-advice/tax-law/tax-dispute.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

Illegal price-fixing in the stainless steel sector – Bundeskartellamt imposes fines

Illegal price-fixing in the stainless steel sector – Bundeskartellamt imposes fines

Illegal price-fixing in the stainless steel sector - Bundeskartellamt imposes fines

The Bundeskartellamt, Germany“s Federal Cartel Office, has imposed fines totaling approx. 205 million euros on several companies and their responsible directors and officers in the stainless steel sector in response to illegal price-fixing arrangements.

On 12 July 2018, the Bundeskartellamt announced that it was imposing fines amounting to around 205 million euros in total on six stainless steel companies, one industry association and ten accountable individuals, as those involved were found to have fixed prices and exchanged information deemed to be sensitive from an antitrust perspective. Investigations in relation to four other companies and one organization are still ongoing.

The process began as early as 2015 with the launch of an industry-wide search. The Bundeskartellamt reported that the companies were found to have coordinated on important price components over a period of years and substantially distorted price competition between businesses. The products affected by the arrangements include long steel products belonging to the product groups engineering, tool and high-speed steels as well as RHS steel. These products are typically marketed based on a pricing model that essentially consists of a base price and surcharges for certain charge materials, in particular scrap metal and alloys, with surcharges making up a significant proportion of the final price. The companies in question had been coordinating the method of calculating scrap metal and alloy surcharges and applying this uniformly across the industry from at least 2004 until no later than the searches in November of 2015. Additionally, it was said that those responsible at the companies had exchanged further sensitive information concerning an increase in the base price.

According to the Bundeskartellamt, it became clear from the investigations that the members of the cartel wanted to avoid price competition or at least noticeably reduce it in order to establish as reasonable a market price level as possible for all companies.

Price-fixing agreements distort fair competition and violate antitrust law. We at the commercial law firm GRP Rainer Rechtsanwälte note that violations of this kind can give rise to other severe penalties beyond fines imposed by antitrust authorities. The cartelists may also be faced with damages claims brought by aggrieved parties.

That being said, violations of antitrust law are by no means always as obvious as in the case of illegal price-fixing arrangements; even minor contractual clauses are capable of violating applicable laws. That is why it is advisable to have lawyers who are competent in the fields of antitrust law and competition law review agreements in view of their consequences from the perspectives of both these legal fields.

https://www.grprainer.com/en/legal-advice/antitrust-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en

Politics Law Society

GRP Rainer Rechtsanwälte – Report on authorized dealer“s entitlement to compensation

GRP Rainer Rechtsanwälte – Report on authorized dealer“s entitlement to compensation

GRP Rainer Rechtsanwälte - Report on authorized dealer"s entitlement to compensation

Under certain circumstances, an authorized dealer may be entitled to claim compensation after termination of the contract with the company if the latter continues to be able to use its business contacts.

In our experience at the commercial law firm GRP Rainer Rechtsanwälte, it is common for an authorized dealer“s potential claims for compensation after termination of the contract with the company to lead to legal disputes. We note that because the German legislature has not explicitly regulated authorized dealers“ entitlement to compensation, it is possible for the provisions governing commercial agents“ right to compensation under sec. 89b of the Handelsgesetzbuch (HGB), Germany“s Commercial Code, to be applied analogously.

These state that the commercial agent is entitled to claim compensation after termination of the contractual relationship with the company if he or she has established new business contacts and the company continues to be able to benefit from these contacts after the contract has come to an end. This right to compensation cannot be contractually excluded.

The provisions can be applied analogously to an authorized dealer“s entitlement to compensation under certain circumstances. The conditions that need to be met for this to happen were set out by the Bundesgerichtshof (BGH), Germany“s Federal Supreme Court, in a ruling from 5 February 2015 (Az.: VII ZR 315/13). According to this ruling by Germany“s highest court of ordinary jurisdiction, the right to claim compensation only arises if the authorized dealer was integrated into the company“s sales force and committed to making his or her business contacts available to the company so that the latter can continue using them. The authorized dealer must have committed to transferring his or her client base to the company in such a way that the company is able to readily harness the benefits of this client information without any delay. Furthermore, the authorized dealer must by virtue of special contractual arrangements be integrated into the company“s sales force to such an extent that he or she from an economic perspective has extensive duties to perform that would otherwise have to be met by a commercial agent.

In the case in question, the BGH denied the authorized dealer the right to claim compensation because the company had not been entitled to use the client information, having contractually committed to block the transferred data and delete it at the request of the authorized dealer.

The right to claim compensation is a controversial topic in the case of commercial agents and all the more so in relation to authorized dealers. Lawyers who are experienced in the field of commercial law can assist authorized dealers and businesses in drafting agreements as well as in the event of legal disputes.

https://www.grprainer.com/en/legal-advice/commercial-law.html

GRP Rainer www.grprainer.com/en/ is an international full service law firm. The lawyers counsel on corporate and commercial law, business law, tax law, IT law and IP law and distribution law. The law firm advises international companies, corporations, mid-sized businesses and private clients worldwide. GRP Rainer can be found in Berlin Bonn Cologne Duesseldorf Frankfurt Hamburg Munich Stuttgart, Germany and London, UK.

Contact
GRP Rainer LLP
Michael Rainer
Augustinerstraße 10
50667 Cologne
Phone: +49 221-27 22 75-0
Fax: +49 221-27 22 75-24
E-Mail: info@grprainer.com
Url: http://www.grprainer.com/en