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.
Most Favored Customer Clause
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Control #:
US-IP1019
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How to fill out Most Favored Customer Clause?
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FAQ
The effect of an improperly drafted/negotiated MFC may have severe financial consequences to the business. Even if not formally invoked, the MFC's mere existence in the contract can also be used as leverage by the client to the demand a price negotiation and may call for violation of Anti-Trust Laws.
GATT Article XXIV provides that regional integration may be allowed as an exception to the MFN principle only if the following conditions are met: (1) tariffs and other barriers to trade must be eliminated with respect to substantially all trade within the region; and (2) the tariffs and other barriers to trade applied
However, the CMA found that narrow retail MFN clauses (ie retail MFN clauses that require parity with the insurer's direct channel) are not anti-competitive because they prevent insurers from 'free-riding' on the platform's investments.
This is an industry term which means that you are getting equal contractual treatment to others on the project billing, accommodations, and any other contractual provision. This is not required by SAG-AFTRA and must be separately negotiated between Performer and Producer.
Most-favored-nation (MFN) status is an economic position in which a country enjoys the best trade terms given by its trading partner. That means it receives the lowest tariffs, the fewest trade barriers, and the highest import quotas (or none at all).
Most favored nation clauses (MFNs), sometimes also referred to as most favored customer clauses, are agreements in which a supplier agrees to treat a particular customer no worse than all other customers (see Standard Clause, General Contract Clauses, Most Favored Customer (www.practicallaw.com/8-510-7389)).
A most-favored-nation (MFN) clause requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other World Trade Organization member countries. Although its name implies favoritism toward another nation, it denotes the equal treatment of all countries.
This Note surveys those developments and discusses some of the risk factors that a company should consider when analyzing the legality of specific MFNs. No court analyzing the competitive merits of MFNs has found them to be illegal under any antitrust law.
The Most Favored Nation (MFN) Model tests an innovative way to lower prescription drug costs by paying no more for high-cost Medicare Part B drugs and biologicals (hereinafter called drugs) than the lowest price that drug manufacturers receive in other similar countries.
