32% , THE PRICE DIFFERENCES BEING FURTHER WIDENED BY CURRENCY DISPARITIES ESPECIALLY BETWEEN THE CURRENCIES OF THE UNITED KINGDOM AND THE NETHERLANDS AND ENCOURAGING NETHERLANDS TRADERS TO OBTAIN THEIR SUPPLIES OF WATTS ' S PRODUCTS DIRECT FROM ENGLAND RATHER THAN APPLY TO THEAL THE SOLE CONCESSIONNAIRE IN THE NETHERLANDS .
11ON 24 JANUARY 1963 THEAL HAD NOTIFIED TO THE COMMISSION AN EXCLUSIVE DISTRIBUTION AGREEMENT FOR CLEANING APPLIANCES FOR GRAMOPHONE RECORDS RELATING TO DELIVERIES WITHIN A SINGLE MEMBER STATE WHICH HAD NOT BEEN PUT IN WRITING - ENTERED INTO WITH WATTS ON 8 SEPTEMBER 1956 - OF INDEFINITE DURATION , UNDER THE TERMS OF WHICH ' ' THE FACTORY UNDERTAKES TO SUPPLY ONLY THEAL NV IN NETHERLANDS TERRITORY AND TO PASS ON ALL ORDERS ORIGINATING IN THAT TERRITORY TO NV ' ' .
12THE NOTIFICATION EXPRESSLY STATED THAT THE AGREEMENT DID NOT EXCLUDE FREE COMPETITION WITHIN THE MEMBER STATE CONCERNED SINCE THE AGREEMENT APPLIED ONLY TO ONE TRADE-MARK .
13ACCORDING TO THEAL THERE WAS A LARGE NUMBER OF COMPETING TRADE-MARKS , THE CONSUMER ' S FREEDOM TO PURCHASE REMAINED UNFETTERED AND THE SOLE PURPOSE OF THE AGREEMENT WAS TO MAKE AVAILABLE TO THE SAID CONSUMER A SPECIALIST ORGANIZATION IN ORDER TO PROVIDE HIM WITH THE BEST POSSIBLE SERVICE AND ESPECIALLY AN AFTER-SALES SERVICE IN THE EVENT OF ANY DEFECTS IN APPLIANCES SUPPLIED .
14THEAL ANSWERED IN THE NEGATIVE THE QUESTION WHETHER SHARING MARKETS OR SOURCES OF SUPPLY WAS ONE OF THE WAYS SPECIFIED IN THE AGREEMENT FOR ATTAINMENT OF ITS OBJECTIVES .
15THE COMMISSION INFORMED THEAL WITH REFERENCE TO THIS NOTIFICATION , BY A LETTER OF 18 APRIL 1969 , THAT SINCE A PROVISIONAL EXAMINATION OF THE AGREEMENT NOTIFIED SHOWED THAT IT DID NOT PROVIDE FOR ANY ABSOLUTE TERRITORIAL PROTECTION , IT COULD THEREFORE BENEFIT FROM THE EXEMPTION PROVIDED FOR IN REGULATION NO 67/67 ; NEVERTHELESS , IF IN FACT THE AGREEMENT DID NOT COMPLY WITH THE CONDITIONS FOR EXEMPTION LAID DOWN IN THE REGULATION , IT SHOULD BE AMENDED ACCORDINGLY , IN WHICH EVENT THE AGREEMENT WOULD BE EXEMPTED ONLY FROM THE DATE OF SUCH AMENDMENT .
16THEAL DID NOT REPLY AND ACCORDINGLY THE COMMISSION HAD NO REASON TO DOUBT THAT THE AGREEMENT COMPLIED WITH THE PROVISIONS OF ARTICLE 1 ( 1 ) OF REGULATION NO 67/67/EEC .
APPLICATION OF ARTICLE 85 ( 1 ) OF THE EEC TREATY
17THE APPLICANT STATES THAT , ALTHOUGH AN ORAL EXCLUSIVE DISTRIBUTION AGREEMENT BETWEEN WATTS AND ITSELF HAS CERTAINLY BEEN IN EXISTENCE SINCE 1956 , ON THE OTHER HAND AN AGREEMENT RELATING TO THE USE AND REGISTRATION OF TRADE-MARKS HAS AT NO TIME BEEN ENTERED INTO BY THE TWO UNDERTAKINGS .
18IT CLAIMS THAT THE COMMISSION IS WRONG IN MAINTAINING THAT THE APPLICANT HAS USED WATTS ' S TRADE-MARK RIGHTS IN THE NETHERLANDS WITH THE CONSENT OF WATTS .
19IT ASSERTS THAT IT IS THE APPLICANT WHICH ESTABLISHED THE TRADE-MARKS DUST BUG , DISC PREENER AND PARASTAT AFTER THE CONCLUSION OF THE EXCLUSIVE AGENCY AGREEMENT FOR CLEANING APPLIANCES FOR GRAMOPHONE RECORDS MANUFACTURED BY