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Common Issues That Impact Distribution Agreements

Bruce Furst

UCLA graduate Bruce Furst holds both a bachelor of arts and a juris doctor. Professionally, Bruce Furst has served as the president of Ashber Corporation for the past 18 years.

Ashber Corporation licenses music content to films and negotiates film rights and distribution agreements. A distribution agreement is a commercial contract that grants distribution rights of a product or service to an entity and typically details payment terms, the length of the agreement, and other business arrangements.
Although distribution agreements are used in many different industries and vary in complexity, these common elements should be considered:
- whether there is a specific territory for distribution rights and whether the rights are exclusive;
- whether there are any reporting obligations or requirements related to performance;
- whether there are any marketing allowances, trademark licenses, or other conditions related to sales;
- whether there are circumstances in which the agreement can be terminated and consequences if termination occurs.

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