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White Label Agreement
"I need a white label agreement for a software product, allowing rebranding and resale by the partner, with a 2-year term, 10% royalty on sales, and quarterly performance reviews."
What is a White Label Agreement?
A White Label Agreement lets one company sell another company's product or service under their own brand name in the Philippines. It's like putting your own label on someone else's goods - common in everything from software and banking services to consumer products.
These agreements need to follow Philippine competition laws and consumer protection rules, especially around proper disclosure and quality standards. The contract typically covers branding rights, quality control, pricing terms, and both parties' obligations. Filipino businesses often use these deals to quickly expand their product lines without developing everything from scratch.
When should you use a White Label Agreement?
Consider a White Label Agreement when you want to quickly enter new markets or expand your product line without extensive R&D investment. It's particularly valuable for Philippine businesses looking to compete with larger companies while maintaining strict compliance with local consumer protection laws.
This agreement makes sense when you have strong distribution channels but limited production capacity, or when you need specialized products that would be costly to develop internally. Many Filipino financial institutions use white labeling to offer digital banking services, while local retailers use it to launch private-label consumer goods under their own brands.
What are the different types of White Label Agreement?
- White Label Service Agreement: Covers outsourced business services like customer support or payment processing, with clear performance metrics and service levels
- White Label Software License: Focuses on licensing ready-made software platforms, including customization rights and technical support terms
- White Label Software Reseller Agreement: Specifically for IT companies reselling software under their brand, with detailed distribution rights and revenue-sharing structures
Who should typically use a White Label Agreement?
- Brand Owners (Licensors): Usually established manufacturers or service providers who create the original product, looking to expand market reach through partnerships
- Resellers (Licensees): Philippine companies seeking to offer products under their own brand name without development costs
- Legal Counsel: Corporate lawyers who draft and review White Label Agreements to ensure compliance with Philippine intellectual property and consumer protection laws
- Quality Control Teams: Staff who monitor product standards and brand consistency across both organizations
- Marketing Departments: Teams responsible for rebranding and promoting white-labeled products in local markets
How do you write a White Label Agreement?
- Identify Core Terms: List specific products/services, branding guidelines, and quality standards that will be white-labeled
- Gather Business Details: Document both parties' legal names, addresses, and business registration numbers from SEC records
- Define Responsibilities: Map out each party's roles in product delivery, customer support, and quality control
- Set Financial Terms: Outline pricing structure, payment schedules, and revenue-sharing arrangements
- Review Compliance: Check Philippine consumer protection laws and intellectual property requirements before finalizing the agreement
- Use Our Platform: Generate a custom-tailored White Label Agreement that ensures all legal requirements are met
What should be included in a White Label Agreement?
- Party Details: Complete legal names, addresses, and authorized signatories of both provider and reseller
- Scope Definition: Detailed description of products/services, permitted branding changes, and territory limits
- Quality Standards: Specific performance metrics, quality control procedures, and compliance with Philippine consumer protection laws
- Intellectual Property: Clear terms on trademark usage, copyright ownership, and licensing restrictions
- Commercial Terms: Pricing structure, payment schedules, and revenue-sharing arrangements
- Term and Termination: Duration, renewal options, and grounds for contract termination under Philippine contract law
- Dispute Resolution: Specific jurisdiction and arbitration procedures following Philippine ADR laws
What's the difference between a White Label Agreement and an Affiliate Agreement?
A White Label Agreement differs significantly from an Affiliate Agreement in several key ways. While both involve business partnerships, their core purposes and operational structures are distinct, especially under Philippine law.
- Branding Control: White Label Agreements allow complete rebranding under the reseller's name, while Affiliate Agreements require promoting the original brand
- Product Ownership: White labeling transfers apparent ownership to the reseller, whereas affiliates simply promote products owned by others
- Revenue Structure: White Label deals typically involve wholesale pricing and markup, while affiliate relationships work on commission-based models
- Legal Responsibility: White Label partners often share product liability and customer service obligations; affiliates mainly handle marketing with minimal legal exposure
- Relationship Depth: White Label partnerships require deeper integration and longer commitments compared to more flexible, shorter-term affiliate relationships
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