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A Value Added Reseller Agreement lets businesses legally resell products after adding their own improvements or services. In the Philippines, these contracts help local tech companies bundle software with training, customization, or support services before selling to end customers.

The agreement covers important details like pricing structures, territory limits, and intellectual property rights under Philippine distribution laws. It protects both the original manufacturer and the reseller by clearly defining how products can be modified, marketed, and supported. Most Filipino VARs use these agreements when dealing with international software and hardware vendors.

Use a Value Added Reseller Agreement when your business plans to enhance and resell another company's products in the Philippines. This is especially important for tech companies adding custom features, training programs, or technical support to existing software or hardware packages.

The timing is crucial - put this agreement in place before starting any product modifications or sales activities. Filipino businesses need it to comply with distribution regulations, protect intellectual property rights, and establish clear terms for warranty coverage. It's particularly vital when dealing with international manufacturers or expanding into new market territories.

• Software License Reseller Agreement: Specialized for software distribution in the Philippines, covering digital rights management, update policies, and end-user licensing terms. Common variations include exclusive territory rights, multi-tier distribution structures, and service level commitments. Additional customization options focus on technical support requirements, localization rights, and cloud-based delivery models.

• Original Manufacturers: Tech companies, software developers, or hardware makers who provide their base products for resale in the Philippines market
• Value Added Resellers: Filipino businesses that enhance products with local support, training, or customization before reselling
• Corporate Legal Teams: Draft and review agreements to ensure compliance with Philippine distribution laws
• Sales Directors: Negotiate territory rights and commission structures outlined in the agreements
• Technical Specialists: Define the scope of allowed modifications and support requirements

• Product Details: List all products, their specifications, and allowed modifications under Philippine distribution laws
• Territory Rights: Define exact geographical boundaries and any exclusive distribution zones
• Pricing Structure: Document wholesale costs, markup limits, and commission arrangements
• Service Requirements: Outline support levels, training commitments, and warranty terms
• Technical Specifications: Detail permitted customizations and integration requirements
• Compliance Check: Our platform ensures your agreement includes all mandatory elements under Philippine law, minimizing legal risks

• Parties and Scope: Clear identification of both parties and detailed product/service descriptions
• Territory Rights: Specific geographical boundaries and exclusivity terms under Philippine distribution laws
• Value-Add Terms: Permitted product modifications and required service levels
• Pricing Structure: Wholesale costs, markup limits, and payment terms in Philippine Peso
• IP Protection: Trademark usage rights and confidentiality provisions
• Termination Clauses: Clear exit conditions and post-termination obligations
• Legal Compliance: Our platform automatically includes all required elements under Philippine law

A Value Added Reseller Agreement differs significantly from an Agency Agreement in several key aspects, though both involve product distribution in the Philippines. The main distinction lies in the relationship structure and product handling rights.

• Product Ownership: VARs purchase products outright and resell them after adding value, while agents never own the products and simply facilitate sales for a commission
• Modification Rights: VARs can modify, customize, or bundle products with additional services; agents must sell products as-is
• Pricing Control: VARs set their own prices and profit margins, while agents typically work within manufacturer-set price ranges
• Legal Liability: VARs assume direct responsibility for product modifications and customer support, whereas agents generally have limited liability
• Territory Rights: VAR agreements often include stricter territorial restrictions and exclusivity terms under Philippine distribution laws