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Exclusive licence injunction continued; US held within territory; no termination on reasonable notice in High Court of England and Wales (Artcrafts v MOU)

Published on: 25 July 2024

Published by a LexisNexis Commercial expert
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Article summary

Artcrafts International SpA v MOU Ltd [2024] EWHC 1558 (KB)

What are the practical implications of this case?

Termination clauses frequently demand close scrutiny and nuanced interpretation. This judgment underlines how accurate wording can shield a contracting party in practice. Such provisions are not mere boilerplate; they merit deliberate and sustained consideration. The decision also highlights when the court will, and will not, imply terms into an agreement.

What was the background?

In April 2011, Artcrafts, an Italian company, and MOU, an English company, entered into a Licence Agreement. It permitted the commercial exploitation of intellectual property rights in ‘Mou’ branded footwear (the Products). Under it, MOU conferred on Artcrafts an exclusive licence to manufacture, distribute, sell, advertise and promote the Products within the Territory (as defined), together with a non-exclusive licence to carry out the same activities elsewhere in the world. The Territory comprised specified countries as well as the US. In exchange, Artcrafts paid MOU substantial royalties. In recent years the relationship deteriorated, and the dispute came before the courts...

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