Owning a wine brand carries with it both:
Where an importer does more than simply handle distribution, e.g. where he has played a large part in conceiving the brand, styling the wine and securing the listings, and has borne a considerable part of the costs involved, he may want to share the benefits of brand ownership with the producer in proportions reflecting their contributions.
Where a producer does more than merely "supply the liquid" sold under an importers brand, e.g. by achieving consistent, superior quality at the price, and perhaps by providing technical expertise and contributing to costs, he may likewise want a proportionate piece of the action.
Although the parties usually apply their minds pretty closely to the cost, pricing and profit issues, they sometimes get involved in these kinds of deals without properly addressing the legal implications of what they are doing and/or how they should protect their respective interests.
What is a brand?
Joint venture agreement
The establishment of a dedicated joint venture company may be considered too costly and complicated, at least to begin with. It is, however, advisable .....
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