White label contracts and co-branding contract issues

"Cobranding, white labelling, portal, online distribution". The internet has generated new ways of doing business; companies are joining forces to offer customers seamless webs of products and services.

White label contracts can range from simple linking contracts to full cobrand integration. These cobranding contracts usually involve a "brander" or "portal" site which provides the "eyeballs" and a cobrand or white label partner which provides goods or services to the portal’s customers via a website with the portal’s look and feel. This is likely to involve revenue share with the portal. Often, if the portal is a serious player, it will require a guaranteed minimum commission in return for the privilege of access to the portal’s customers.

Here are examples of the issues which arise in white label contracts:

Exclusivity clauses: The co-brand partner is likely to require some degree of exclusivity especially if it is paying a minimum guaranteed commission.

Promotional obligations: The party providing the white label services will need clear and well defined promotional commitments by the portal partner where there is a minimum guarantee.

Data protection: The parties must ensure that the co-brand contract properly provides for use / transfer of personal data for marketing purposes in light of the legal regime for privacy / data protection.

Branding: If there is to be a cobrand site, the parties will need to be clear how this is going to work including: how it will look, which parts the portal partner is allowed to provide, who gains the co-brand traffic for the purpose of Comscore / Media Metrix web audience stats etc.

We have advised on dozens of white label contracts in various online sectors including insurance, computer games and dating. For a free initial chat and more information about cobranding contracts, call Adam Taylor of Adlex Solicitors on +44 (0) 207 317 8404 or email.

See also:

internet law homepage
internet regulation
internet privacy
internet terms and conditions
web design legal issues
web hosting legal issues