Glossary · Business & Sourcing
What Is Formula Exclusivity?
Formula exclusivity is a contractual commitment that the manufacturer will not supply a specified formula, or a substantially similar one, to other buyers. It is granted for a defined period and territory, and it is distinct from owning the formula itself, which is a separate question of intellectual property.
Why it matters when you source
Without exclusivity, your differentiated product can reappear under another brand from the same line. If the formula is your positioning, negotiate exclusivity in writing before development begins — it is far cheaper than renegotiating after launch.
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