What are Coexistence Agreements?
Coexistence agreements are contracts that establish the conditions under which different brands, generally similar ones, can operate in the same market without generating conflicts. These agreements are particularly important in the European Union, where brands operate in multiple jurisdictions that, although they share similar regulations and, may have differences. Such agreements may include various clauses, such as the use of names and logos, conditions for the sale and advertising of products, and the delimitation of specific geographical areas and segments in which each brand may operate.
Applicable Regulations for New Coexistence Models
One of the main developments in international commercial practice is the express recognition and specific regulation of brand coexistence agreements. These agreements allow companies from different countries to operate under similar distinctive signs, establishing clear conditions that prevent litigation and guarantee legal certainty. Trademark coexistence has become essential to facilitate the coexistence of companies that may have similar names, logos or products, avoiding conflicts and promoting business development.
European legislation, through Regulation (EU) 2017/1001 on the European Union trademark, and Law 17/2001 on Trade Marks in Spain, provide the necessary legal framework for the formalisation of these agreements, ensuring that the parties can precisely define the areas of use, territories, products and services concerned. The specific regulation of these agreements eliminates the previous legal uncertainty that limited the international expansion of trademarks and allows companies to plan their growth strategies with greater certainty.
Strategies for Coexistence between Trademarks from Different Countries
For coexistence agreements to be effective in an international context, it is essential to implement appropriate strategies that ensure fruitful collaboration. First, it is important to establish a clear definition of the limits of trademark use in each country. This includes specifying territories, products, and distribution channels.
Secondly, guidelines should be established on how to use the brands in advertising and marketing to avoid confusion among consumers and protect the integrity of both brands. These rules may include the design of promotional materials and the use of logos at events.
Finally, with regard to possible conflicts that may arise between the parties, certain clauses should be included in the agreement establishing procedures for resolving disputes in order to prevent costly and protracted litigation. This may include mediation or arbitration as alternative methods of conflict resolution, which may be more efficient than going to court.
At the Commercial Law Department of Belzuz Abogados, S.L.P., we offer specialised advice to national and international companies, ensuring compliance with applicable regulations and maximising the business opportunities presented by the coexistence of brands in globalised markets.
Benefits of Coexistence Agreements
Coexistence agreements offer multiple benefits to companies that decide to adopt this strategy in a European context. On the one hand, collaboration between brands can increase the visibility of both, leveraging each other’s image to generate greater business opportunities. It allows for growth in countries where they did not previously have a presence, facilitating entry into new markets and allowing companies to benefit from each other’s reputation and recognition.
Furthermore, this collaboration can open doors to innovation, allowing companies to combine resources and knowledge to develop new products or services. This can result in the creation of unique products that leverage the strengths of both brands.
Conclusion
Coexistence in the market through agreements between companies from different countries in the European Union is a smart strategy that can provide multiple benefits. By establishing collaborative and respectful relationships, brands not only protect their legal interests, but also create opportunities for growth and innovation.
In a context where competition is fierce and brands seek to expand their presence internationally, adopting these strategies can be the key to sustainable success. At the Commercial Law Department of Belzuz Abogados, S.L.P., we can advise and assist you with the implementation of coexistence agreements with other brands, ensuring that all legal aspects are adequately covered and that the agreement is beneficial to all parties involved, promoting productive and beneficial coexistence in the market.
Frequently Asked Questions about Coexistence Agreements between International Trademarks
When is it advisable to formalise a brand coexistence agreement?
It is advisable to formalise this type of agreement when two companies wish to use similar brands in territories, sectors or distribution channels that may overlap, especially in processes of internationalisation, mergers or entry into new markets.
What must a coexistence agreement include to be legally effective?
The agreement must specify the territories, products and services affected, conditions of use of names and logos, advertising guidelines, dispute resolution mechanisms and periodic review clauses to adapt to changes in the market or legislation.
What are the risks if a coexistence agreement between brands is not formalised?
The absence of an agreement can lead to litigation for infringement of industrial property rights, loss of reputation, trade restrictions, and high legal and financial costs. In addition, it can limit the capacity for international expansion and create legal uncertainty for both parties.
Do you have any further questions about international trademark coexistence agreements?
The Commercial Law Department at Belzuz Abogados, S.L.P., is at your disposal to answer any questions and assist you in the process of expanding and protecting your trademark in globalised markets.