What is the maximum duration of an exclusivity clause in Spain?
Maximum duration of an exclusivity clause
The maximum duration of an exclusivity clause in Spain will depend on several factors. These include the type of contract and the service provided (commercial, labor or services), and industrial and commercial objectives of the parties.
Thus, there is no pre-established and fixed time in the regulations, but it is common for them to last from 6 months to 1 year. Ultimately, the essential thing is that it must be reasonable, proportional and not abusive.
Below, here are several examples of exclusivity clauses and their durations:
In a territorial distribution exclusivity clause, Distributor A will have exclusivity to sell Company B’s products in the Latin American territory. This for a period of 5 years from the date of signing this contract.
As another example, in an exclusivity clause, Supplier C agrees to exclusively supply Company D with XYZ components for its product line. This for a period of 3 years from the start date of production.
Yet another example, in a trademark use exclusivity clause, Licensee E has the exclusive right to use the trademark “MarcaFamosa” on personal care products. Also, this will be for a period of 10 years from the date of granting the license.
Finally, a Software Development Exclusivity, Developer J agrees to work exclusively on the creation of a mobile application for Company K. In this case, it will be for a period of 6 months from the project start date.
All this always respecting the provisions of the Civil Code in terms of contracting.