Legal Question in Business Law in Nevada

Industry Exclusivity for a Client

A client has recently asked for exclusivity on our professional Internet development services. I believe that they are asking for an industry exclusivity as this would give them a competitive advantage.

They have asked for us to give them a ballpark on what this exclusivity would cost them above and beyond our normal fees. Our normal fees includes an upfront fee, a monthly fee and a transaction fee.

How would we price an industry exclusivity for 1 year? Or 2 years?

Do we compute lost business opportunity and quote that? Is there a existing model for this?


Asked on 6/28/07, 9:53 pm

3 Answers from Attorneys
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Industry Exclusivity for a Client

As Mr. Whipple points out, this is a question for your management team or a pricing consultant, not a lawyer. Once you've decided on what to charge, then contact a lawyer to properly negotiate and document the deal.

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Answered on 7/02/07, 4:34 am
Johm Smith tom's

Re: Industry Exclusivity for a Client

When the exclusivity ends, you may very well find yourself competing with the businesses that appeared to fill the void you left when you cut off all your other customers, who would very likely not want to take you back. You drastically limit your options and viability when you grant exclusivity. You can contact us if you want more analysis. NanceGroup.com

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Answered on 6/28/07, 10:45 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Industry Exclusivity for a Client

I think you need biz school type consulting assistance, not legal services. Your question raises issues of business judgment rather than legal questions. Lawyers are cautioned to avoid giving strictly or primarily business-judgment consultation unless they have a dual relationship with the client and appropriate business expertise.

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Answered on 6/28/07, 11:33 pm


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