Legal Question in Business Law in California

license agreement

I have a kiosk in a mall where I sell clothing, shawls, scarves, jewelry and accessories. Yesterday another kiosk opened that also sells clothing. I thought I had exclusivity because My license agreement reads, ''permitted use: for the exclusive retail sale of silk and cashmere scarves, clothing and freshwater pearl jewelry and accessories. Am I misunderstanding?


Asked on 4/08/08, 3:27 pm

4 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: license agreement

Since the quoted snippet comes under the "permitted use" section or heading, I would guess that it's intended to limit what you can sell, and not to give you exclusive rights to sell those items, but it's poorly worded. Probably typed into a blank on the preprinted lease.

Exclusive rights to sell particular merchandise are very common in mall and shopping center leases, and if you don't have one it may be (a) you didn't bargain hard enough, or (b) your mall management considers kiosks a step below its regular stores and thus not entitled to the benefit of a protected range of merchandise.

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Answered on 4/09/08, 3:10 am

Re: license agreement

Unfortunately, it appears, based on the limited sentence that you quoted that YOU agreed to sell ONLY those items.

Did the agreement provide any limitations on the mall that you would have the only kiosk to sell these items?

This is why you need to have an attorney review the agreement BEFORE you sign it.

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Answered on 4/08/08, 3:33 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: license agreement

It is impossible to interpret a contract from such a short snippet. However, the term you described sounds like a limitation on YOUR use of the kiosk.

There may be other terms in the lease that do give you an exclusive right to be the sole kiosk in that mall that sells "silk and cashmere scarves, clothing and freshwater pearl jewelry and accessories", but you should have an attorney review the ENTIRE lease to see if you have any legal grounds to take action.

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Answered on 4/08/08, 3:45 pm
Terry A. Nelson Nelson & Lawless

Re: license agreement

That language probably does not provide you the 'exclusivity' you thought. It should have been a lot more specific. However, you can certainly argue that exclusivity is what you've been paying for, and expect to get.

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Answered on 4/08/08, 5:50 pm


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