Re: Need good sound advice
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Posted by M Arthur Auslander on December 02, 2001 at 23:57:17:
In Reply to: Need good sound advice posted by Donnie on December 01, 2001 at 05:04:48:
: I have a question:
: If a company has distribution agreement for music from a company and that company is purchased (ie. all stock/assets) from a larger company what should legally happen?
: *the original distribution contract with the first company stated that "only with written approval may the contents of this distriubtion agreement be assigned to any other company"----which they did NOT get!
: So my question is this....
: A. Since the stock was purchased by the larger company shouldn't they have to pay us for our stock?
: B. The "larger" company is currently selling our products right now without (in my opinion) a valid distribution agreement.
: So what legal action can we take?
: Any and all help will be greatly appreciated!
Questions like this keep lawyers in business.
My reading is that if a Corporation has an agreement, unless the agreement specifically provides that a change in ownership or control of the corporation voids the agreement, then the agreement continues in the bought Corporation.
M. Arthur Auslander
Auslander & Thomas-Intellectual Property Law Since 1909
The Intellectual Property Law Server
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