Virgin Islands Most Favored Customer Clause

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US-IP1019
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Description

This form contains a Most Favored Customer Clause, which can be incorporated into license agreements to obligate the licensor to grant the licensee equivalent or better terms than the licensor has granted to any of its past, present and future customers.

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FAQ

The most favored nation clause is a term that is given to a certain country, and it implies that the recipient of the favorable treatment must receive equal trade advantages as the most favored nation of a country's trade policy.

Favored nations clauses are relatively simple to describe: they are a contractual commitment that no other relevant party will receive better (or more advantageous) terms from the party making the commitment.

Antitrust Risks Associated with MFNs. No court analyzing the competitive merits of MFNs, standing alone, has found them to be illegal under any antitrust law.

Most-Favored Nations (MFN) clauses (also known as antidiscrimination clauses or most-favored customer clauses) are common in business today. These provisions require that the supplier will treat a particular customer no worse than all other customers (and sometimes even better).

Most favored nation (MFN) status is an economic position in which a country enjoys the best trade terms given by its trading partner(s). That means it receives the lowest tariffs, the fewest trade barriers, and the highest import quotas (or none at all).

Most-Favored-Nation Clause Explained For example, if a country belonging to the WTO reduces or eliminates a tariff on a particular product for one trading partner, the treaty's MFN clause obligates it to extend the same treatment to all members of the organization.

The most favoured nation (MFN) principle is based on the idea that countries should treat all their trade partners equallythat no one country should be more favoured. It means no country should give special treatment to goods or services coming from one particular trading partner.

Most favoured nation status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the WTO. A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements.

More info

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Virgin Islands Most Favored Customer Clause