Redrafting a distribution agreement for compliance with competition rules

Lawyers of Kosta Legal have helped its client – a Japan’s leading manufacturer of writing accessories, to expand its Uzbek business by entering into a distribution agreement with a local company.

Our role as external counsel was to revise a client’s standard distribution agreement template by aligning it with relevant requirements of Uzbek law and to assist it in negotiating and executing the agreement with a local distributor. Requirements of Uzbek competition law had to be considered in redrafting particular terms of the agreement that provided for territorial restrictions, price setting and questionable marketing techniques. As Uzbek competition law continues to develop with more restrictions being brought in, much conciseness is needed in drafting distribution agreements, especially if some exclusive rights are granted.