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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 116705
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I am trying to protect my interests with a friend who owns a

Customer Question

I am trying to protect my interests with a friend who owns a business I may resell for. I found a new client that is in a market niche not explored by him. How do I show (what factors) constitue a resell of existing product versus creating an new business market that I could/should get an agreement beyond the typical reseller agreement? He says Im just reselling so the resale agreement is enough. I contend I found a client (potentially large) by developing another use for his product and he has no client anywhere in the same industry or like the one Im pursuing.
Submitted: 1 month ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Actually, the only way to do this is to ask for an exclusivity agreement as part of your resale agreement, granting you exclusive rights to resell within a particular industry. If you have an exclusive rights in the particular industry, then you would be compensated by the large volume of sales you will make by pushing the product for the new purpose you have developed. Other than that, you can seek a partnership agreement with him but if he is not willing to do that, seek the exclusive reseller agreement in that particular industry. Even if you have created a new market for him with this new use, it is still his product and you are still reselling it, so a reseller agreement is all this is even if you are selling for a new use.
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Customer: replied 1 month ago.
My assoc's comment is that I am just reselling his product. How do I quantify in legal terms that the business niche I created warrants this exclusivity agreement? What factors can I demonstrat that shows this is a new market vs not just another client as he sees it?
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your reply.
Actually, as has been said "a rose is a rose, by any other name." You are not creating a new product, you are simply selling his existing product in a new market. Even in a new market that does not make it a new product it is the same old product, so you are just reselling his product, just in a new area.
Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.
Customer: replied 1 month ago.
True, but since I created this new market / client how can I prove I have a case for exclusivity? Im developing this market niche myself and feel I am entitled to more than just a single sale, esp if he could sell around me later.
Expert:  Law Educator, Esq. replied 1 month ago.
Thank you for your reply.
You would do that by asking as I said in my first answer for an exclusivity agreement for that particular new market or seeking a higher percentage for your commissions for sales in that market.
Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.
Customer: replied 1 month ago.
34;an exclusivity agreement for that particular new market "...How do I define a new market vs just another customer? what makes a new market in business/legal terms?
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your reply.

You define new market as any area where you are selling this product for the new purpose you have found for the product. Any market outside of the currently existing market he is selling in.