In a ruling already being hailed by experts as a landmark in corporate law, Newsom Legal secured a key victory in a business law case between two giants of the tech industry.
The litigation, which lasted over ten months, centered on a distribution agreement signed in 2021 between TechNova Solutions S.A., represented by Newsom Legal, and the U.S.-based multinational DynaWare Inc., a leader in enterprise logistics software solutions.
The Dispute: Exclusivity Clause and Growth Restrictions
The lawsuit was filed by TechNova, a fast-growing firm, which alleged that the contract with DynaWare included an exclusivity clause preventing it from marketing or developing similar technologies with third parties for a period of five years. According to TechNova, this provision stifled its expansion, blocked new strategic alliances, and placed the company in an unjustified position of commercial dependency.
The defense argued that the clause was not only disproportionate but also violated fundamental legal principles, including free competition and contractual balance. It was also alleged that DynaWare used its dominant market position to impose harsh terms without genuine negotiation.
Legal Strategy
The Newsom Legal team crafted a defense focused on proving that the clause was not only abusive but also contrary to public economic order. The team submitted comparative studies of similar regulations in the European Union and the United States, as well as expert opinions in commercial law and economics.
In court, the team argued that “contractual freedom cannot serve as a shield for the abuse of economic power,” and that “freedom of contract has limits when it hinders competition or the viability of an emerging company.”
The presentation included a detailed analysis of the clause’s economic impact on TechNova, projected loss figures, and internal emails revealing DynaWare’s repeated refusal to revisit the contract terms despite documented requests from its counterpart.
The Ruling and Its Implications
The judge of the 12th Commercial Court declared the exclusivity clause null and void, ruling that it exceeded reasonable limits in terms of duration, geographic scope, and business freedom. The court also ordered DynaWare to pay damages for breach of contractual good faith.
The ruling has made waves in both business and legal circles, highlighting the need for greater scrutiny of exclusivity clauses in commercial agreements—especially when small or medium-sized companies face off against multinational corporations.
Newsom Legal has earned recognition for its strategic focus in corporate law, mergers and acquisitions, and high-profile litigation. With this victory, the firm further cements its status as a key player in defending business rights in an increasingly complex corporate landscape.