Global communications manufacturer successfully secures licensing agreement

Client(s) Global communications manufacturer

Jones Day represented a global communications manufacturer in negotiations with a mobility solutions partner to license the right to use its software, brand, and to distribute its solutions and devices in North America and Europe. The negotiation of this agreement required careful analysis of whether French TUPE regulations on automatic transfer of employment from the transferor to the transferee in case of transfer of business would apply to the licensing agreement, in a context where the mobility solutions partner had not factored this analysis in its initial business plans.

Following thorough analysis conducted by Jones Day, the global communications manufacturer concluded that French TUPE regulations did not apply to the contemplated licensing agreement, and did not transfer any of its employees to the mobility solutions partner. The employee representatives and employees did not challenge this position, which allowed the two parties to successfully enter into the licensing agreement without employment-related litigation.