Redistribution Agreement Requirements

Redistribution Agreement Requirements: What You Need to Know

A redistribution agreement is a legal agreement between two parties that allows one party to redistribute or resell products or services provided by the other party. In most cases, redistribution agreements are used by companies to expand their reach and increase their revenue by allowing third-party distributors to sell their products or services.

If you are considering entering into a redistribution agreement, it is essential to know the requirements that must be met to ensure you are complying with the law and protecting yourself from potential legal disputes. Here are some essential requirements you should consider before entering into a redistribution agreement:

Define the Scope of the Agreement

The first and foremost requirement for a redistribution agreement is defining the scope of the agreement. The scope of the agreement should be clear and should include details such as the products or services you will be redistributing, territory, exclusivity, duration, and pricing. It is essential to define all terms clearly to avoid any disputes that may arise during the contract period.

Intellectual Property

Most products or services that are redistributed are intellectual property, such as software, music, or movies. Intellectual property issues need to be addressed in the redistribution agreement, and both parties must agree on the terms of use, ownership, and licensing of the intellectual property.

Liability and Indemnification

Liability issues may arise during the duration of the redistribution agreement. Therefore, it is crucial to identify who will be responsible for any damages or liabilities that may arise. Both parties should agree on the terms of liability, and indemnification should be included to protect both parties from legal disputes.

Termination and Renewal

The duration of the redistribution agreement should also be identified, and both parties should agree on the termination and renewal terms. The agreement should include clauses that allow for the termination of the contract in case of breaches, defaults, or other unforeseen events.

Compliance with Regulations

Regulations governing the sale of the product or service being redistributed should be considered during the agreement`s negotiation. The agreement should comply with any relevant state and federal regulations.


Entering into a redistribution agreement can be an excellent way to increase your revenue and expand your reach. However, it is crucial to consider the requirements outlined above before entering into any legal agreement. Define the scope of the agreement, address intellectual property issues, identify liability and indemnification terms, and comply with relevant regulations, termination, and renewal terms. By following these requirements, you can ensure a successful redistribution agreement that is beneficial to both parties.

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