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Value Added Reseller Agreement
I need a Value Added Reseller Agreement for a company that will distribute our software products in Ireland, with terms that include a 15% discount on wholesale prices, a minimum annual sales target, and provisions for marketing support and training. The agreement should also specify the territory as Ireland and include clauses for termination with a 30-day notice period.
What is a Value Added Reseller Agreement?
A Value Added Reseller Agreement sets out the terms between a supplier and a company that adds features or services to an existing product before reselling it. Under Irish commercial law, these agreements let resellers bundle products with their own services, like when an IT company adds custom software to hardware packages or provides specialized training.
The agreement covers key areas like pricing structures, territory rights, and intellectual property protection. It also outlines service level commitments and warranty terms that comply with Irish consumer protection laws. For resellers, this document provides legal clarity on their right to modify and market the original product while protecting both parties' business interests.
When should you use a Value Added Reseller Agreement?
Use a Value Added Reseller Agreement when you plan to enhance and resell another company's products in Ireland. This is especially important for tech companies adding custom software to hardware, consultancies bundling services with existing solutions, or distributors who modify products before selling them to end customers.
The timing is crucial - put this agreement in place before you start modifying or marketing the original product. Irish law requires clear documentation of intellectual property rights and liability arrangements between suppliers and resellers. Having this agreement ready helps avoid disputes about profit sharing, territory rights, and service obligations while keeping you compliant with local consumer protection standards.
What are the different types of Value Added Reseller Agreement?
- Reseller Software License: Focuses specifically on software distribution rights, including terms for code modification, user licensing, and technical support obligations under Irish software licensing laws.
- Software License Reseller Agreement: A broader agreement covering both software and related services, with detailed provisions for maintenance, updates, and end-user support, typically used by full-service IT solution providers in Ireland.
Who should typically use a Value Added Reseller Agreement?
- Original Product Manufacturers: Companies that create the base products and set the terms for how their goods can be modified and resold in the Irish market.
- Value Added Resellers: Irish businesses that enhance products with additional features, services, or customizations before selling to end customers.
- Legal Advisors: Corporate lawyers who draft and review these agreements to ensure compliance with Irish commercial and consumer protection laws.
- Business Development Teams: Professionals who negotiate terms, territories, and pricing structures between manufacturers and resellers.
How do you write a Value Added Reseller Agreement?
- Product Details: List all products covered, including specifications, modifications allowed, and any technical requirements under Irish standards.
- Territory Rights: Define exact geographical areas for resale, considering EU single market implications.
- Pricing Structure: Document both purchase prices from manufacturer and minimum resale prices if applicable under Irish competition law.
- Service Terms: Outline support obligations, warranty terms, and maintenance requirements.
- IP Rights: Detail permissions for product modification and branding within Irish intellectual property frameworks.
- Documentation: Our platform generates comprehensive agreements that include all these elements while ensuring compliance with Irish law.
What should be included in a Value Added Reseller Agreement?
- Party Details: Full legal names, registered addresses, and company registration numbers of both manufacturer and reseller.
- Product Scope: Detailed description of products, permitted modifications, and value-added services under Irish commercial law.
- Territory Rights: Clear geographical boundaries for sales and distribution within EU single market context.
- Payment Terms: Pricing structures, payment schedules, and currency specifications compliant with Irish financial regulations.
- IP Protection: Rights to modify, rebrand, and market products while respecting Irish intellectual property laws.
- Termination Clauses: Conditions for ending the agreement and post-termination obligations under Irish contract law.
What's the difference between a Value Added Reseller Agreement and an Access Agreement?
A Value Added Reseller Agreement differs significantly from a Distributor Agreement in several key aspects under Irish law. While both involve selling products, their scope and obligations vary considerably.
- Product Modification Rights: Value Added Resellers have explicit permission to modify or enhance products before resale, while distributors typically sell items as-is.
- Service Requirements: VARs must provide additional services or customizations, whereas distributors mainly handle logistics and sales.
- Intellectual Property: VAR agreements include detailed provisions for modifying and rebranding products, while distributor agreements focus on maintaining original branding.
- Pricing Structure: VARs often have more flexibility in pricing due to added value services, while distributors usually work within strict manufacturer pricing guidelines.
- Technical Expertise: VAR agreements require proof of technical capability to modify products, which isn't typically needed in distribution agreements.
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