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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 Denmark, with terms including a 12-month renewable contract, minimum sales targets, and provisions for marketing support and training. The agreement should also include clauses for data protection compliance and termination conditions with a 30-day notice period.
What is a Value Added Reseller Agreement?
A Value Added Reseller Agreement lets companies legally sell someone else's products after adding their own improvements or services. In Denmark, these contracts are common in the tech and software sectors, where resellers might add local language support, extra features, or specialized customer service before selling to end users.
Under Danish contract law, these agreements spell out key terms like pricing structures, territory rights, and intellectual property rules. They protect both the original manufacturer and the reseller while ensuring compliance with EU competition laws and Danish consumer protection standards. The reseller gets official permission to enhance and market the product, while the manufacturer maintains control over their brand and core product.
When should you use a Value Added Reseller Agreement?
Consider using a Value Added Reseller Agreement when you plan to enhance and resell another company's products in Denmark. This is especially relevant for tech companies adding Danish language support, local customer service, or industry-specific features to existing software or hardware products.
The agreement becomes essential before you start modifying or marketing the original product. It protects your investment in customization while clarifying your rights and responsibilities under Danish law. Many Danish businesses need this agreement when expanding their product portfolio without developing everything from scratch, or when creating specialized solutions for specific industries like healthcare or finance.
What are the different types of Value Added Reseller Agreement?
- Basic Distribution: The standard Value Added Reseller Agreement covers core distribution rights, basic customization, and territory limits within Denmark
- Full-Service Model: Includes comprehensive support obligations, training requirements, and detailed service level agreements
- Software-Specific: Focuses on code modification rights, API access, and technical integration requirements under Danish IT law
- Industry-Specialized: Contains specific provisions for regulated sectors like healthcare or financial services in Denmark
- Multi-Territory: Expands rights across the EU while maintaining compliance with both Danish and broader European regulations
Who should typically use a Value Added Reseller Agreement?
- Original Manufacturers: Tech companies, software developers, or product makers who want to expand their market reach in Denmark through authorized resellers
- Value Added Resellers: Danish businesses that enhance and customize products with local features, training, or support services
- Legal Counsel: Internal or external lawyers who draft and review these agreements to ensure compliance with Danish contract law
- Business Development Teams: Professionals who negotiate terms, pricing structures, and territory rights
- Compliance Officers: Staff ensuring the agreement meets Danish consumer protection laws and EU competition regulations
How do you write a Value Added Reseller Agreement?
- Product Details: Document exact specifications of the original product and planned value-added modifications
- Territory Rights: Define the specific Danish regions or market segments where resale is permitted
- Pricing Structure: Outline both purchase costs from manufacturer and permitted resale pricing ranges
- Service Requirements: List all support, maintenance, and customer service obligations
- Legal Compliance: Check Danish consumer protection laws and EU competition regulations
- Draft Generation: Use our platform to create a customized, legally-sound agreement that includes all mandatory elements
What should be included in a Value Added Reseller Agreement?
- Parties and Roles: Clear identification of manufacturer and reseller, including corporate details and authorized signatories
- Product Scope: Detailed description of original products and permitted modifications under Danish law
- Territory Rights: Specific geographical areas and market segments for authorized resale
- Pricing Terms: Purchase costs, resale margins, and payment conditions compliant with EU competition rules
- Service Obligations: Support requirements, quality standards, and performance metrics
- Intellectual Property: Usage rights, brand guidelines, and modification permissions
- Termination Clauses: Clear conditions for ending the agreement and post-termination obligations
What's the difference between a Value Added Reseller Agreement and an Advisor Agreement?
A Value Added Reseller Agreement differs significantly from a Distribution Agreement in several key aspects, though both involve selling products to end users in Denmark. While distributors typically just move products from manufacturer to customer, value-added resellers actively enhance or customize the original product.
- Product Modification Rights: Value-added resellers have explicit permission to modify or enhance products, while distributors must sell items as-is
- Technical Requirements: VAR agreements include detailed specifications for allowed modifications and quality standards
- Pricing Structure: VARs usually have more flexibility in pricing due to their added services and customizations
- Support Obligations: VARs typically handle all technical support for their modifications, while distributors often rely on manufacturer support
- Intellectual Property: VAR agreements contain more extensive IP provisions covering both original and modified features
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