CJEU: manufacturers using selective distribution can prevent their retailers from selling on online platforms

On December 6, the Court of Justice of the European Union (CJEU) delivered its final ruling in the Coty case. This is a landmark judgment, since it will have a strong impact on the internet sales strategies of all those companies that, in order to preserve the quality of their products and ensure their proper use, want to use a selective distribution system. In this regard, it has to be recalled that from the perspective of EU competition law, selective distribution is a distribution system where the supplier undertakes to sell the contract goods or services only to retailers which meet specified qualitative criteria and where these retailers undertake to sell such goods only to final consumers or to other authorised retailers within the territory reserved by the supplier to operate that system.

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The European Commission provides guidance on SEP licensing but leaves open issues

On November 29, the European Commission published its long-awaited “Communication setting out the EU approach to standard-essential patents” (SEPs). The stakeholders were expecting from the Commission in-depth guidance on the definition of fair, reasonable and non-discriminatory (FRAND) terms in the context of SEP licensing. However, the Commission did not address all the open issues, leaving room for continued legal uncertainty on the exact meaning of FRAND. Continue reading “The European Commission provides guidance on SEP licensing but leaves open issues”