Sales promotion via the Internet by companies with a distribution network How to avoid conflicts with the network Marco Hero TIGGES Rechtsanwälte Zollhof 8 40221 Düsseldorf Germany Tel.: +49(0)211/8687-112 Fax: +49(0)211/8687-270 hero@tigges-info.de

Advertising Direct marketing Overview Legal classification Consequences in the case of infringements of (legally protected) rights Direct marketing As principal As manufacturer As franchisor

Advertising is permissible in principle I. Advertising Advertising is permissible in principle Also possible in competition against advertising by other participants in the distribution network No exclusive reservation of advertising via the Internet

I. Advertising Usually passive sales and distribution in the sense of the Vertical Block Exemption Regulation (EC 2790/1999) Active sales and distribution only as an exception, e.g. through personalised mailings, customer group-related banners

False or erroneous information as trigger of Damages claims Recourse I. Advertising False or erroneous information as trigger of Damages claims Recourse Compensation claims

Internet sales = passive sales Parallel direct sales possible II. Direct Marketing Internet sales = passive sales Parallel direct sales possible without sales restriction? with territory or customer protection?

II. Direct sales & distribution As principal in addition to the commercial agent permissible in principle despite territory protection but: compensation for the commission losses suffered by the commercial agent

II. Direct sales & distribution As business person in addition to the distributor permissible in principle even in the case of exclusive sales and distribution but: compensation for the losses suffered by the distributor, for equitable reasons

II. Direct sales & distribution As franchisor in addition to the franchisee possible in principle despite territory and customer protection however: compensation for revenues lost by the franchisee

II. Direct sales & distribution Fundamental antitrust-law restriction when the direct Internet sales by the manufacturer exert such a pressure on the distribution network that it is equivalent to price-fixing

Questions?

Thank you for your attention! Marco Hero TIGGES Rechtsanwälte Zollhof 8 40221 Düsseldorf Germany +49 211 8687 112 +49 211 8687 270 (Fax) hero@tigges-info.de