California  |  Business Law

Legal Question

Asked on: 8/23/13, 1:37 pm

I have a business law, contractual disagreement question. This question might seem complicated so forgive me if it is convoluted. There are two companies were one creates a product and the other distributes the product over a 25 year span. The manufacturing company is located out of the US and the distributing company distributes to the US through its subdistributing channels. The product was a small and little to no name product in the beginning. 25 years later, this product is a big brand. The distributing company does not have IP rights to the product because they were just the distributor. Currently, the manufacturer sold the business to a big corporation and the big company now owns the product. The big company and the distributor cannot come to terms on a new contract.

The distributing company basically built the product name and doesnt want to sign the new contract. Is there any legal protection/compensation where big corp has to pay distributing company for their service and building the brand over the years?

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