Under EU law, a licensor may prohibit its licensees from soliciting sales from outside its exclusive territories, but it cannot prohibit unsolicited or passive sales.

Question

Quizplus · Accepted Answer

This is known as the "passive sales" principle of EU competition law, which allows licensees to respond to unsolicited orders from customers located outside their exclusive territory. Prohibiting passive sales is considered a violation of competition law and can result in penalties or legal action.

Under EU Law, a Licensor May Prohibit Its Licensees from Soliciting