Renegotiation of a Value Added Reseller Agreement (VAR)

December 23rd 2021

We were instructed to renegotiate a VAR agreement which had been in force for 4 years. Strictly under the terms of the agreement, since there was exclusivity the client may have had to pay 50% of the costs of selling assets to a purchaser that it sourced itself. The client was concerned about the meaning and effect of the agreement and the consequences for it in this context.

We advised on the consequences of terminating the existing agreement and on offering a new agreement.

During negotiations the issue of price fixing arose in the context of control over the price for which the reseller sells the licensed product; we advised on the implications of this in relation to UK competition law.

We successfully negotiated a new reseller agreement for this client on more favourable terms than the original.