If Michael Jordan partners with GoPro (cameras for sports), i.e. via an endorsement deal where Jordan promotes GoPro cameras to his fans, then can Jordan NOT also partner with Epson (cameras, printers, Augmented Reality glasses, printers)?
There’s an episode of Shark Tank where one of the sharks refuses to give the visitor/pitcher a deal on his coffee product, because the shark already partners with someone who produces coffee. That makes sense, but is that always the case? Or are there exceptions?
What if Jordan promotes GoPro cameras, and Epson AR glasses, but NOT Epson cameras? In other words, if X partners with Y, can X also partner with one type of product Z makes that’s NOT in direct competition with a product from Y, as long as X does NOT partner with a product Z makes that IS in competition with a product from Y?
This isn’t exactly a genius question, but can you think of details/examples/specifics that relate to it?
Thanks gang!!
It is my understanding that most contracts like this have a “non-compete” clause. Depending on the language used, the non-compete clause could range from being an exact product from a competitor (Epson cameras, in your hypothetical), but could also cover situations where any product from the competitor could be blocked. Lawyers for the company who is signing the licensing deal with the celebrity probably favor the latter case, whereas lawyers for the celebrity probably favor the former case, and the exact details are hammered out in negotiations.
“Partners” isn’t a well-definted term here, you have to look at specific cases. Any serious endorsement deal will be drafted by a lawyer who will put in a clause limiting the endorser from endorsing competitor’s products, so the agreement will tell you what you can endorse. This is pretty cut-and-dry, though of course sometimes there will be disagreements of the ‘is a hamburger a sandwich?’ type. For an investor on Shark Tank, there’s probably no binding contract, they just feel that it would hurt both their income and reputation to say to one coffee business ‘yeah, I’ll support you’ then turn around and try to drive their business to another one. OTOH, a lot of people on Shark Tank work with manufacturers to make their products, and a given manufacturer may package coffee or sew shirts to different specs for two different businesses, it’s actually not that uncommon. It’s even more common if you walk further up the supply chain, as some chips or parts used for consumer products are only made by a few manufacturers and are sold in bulk without any ‘non compete’ in the contract.