So yeah, this is pretty straightforward. Mt.Gox provides exclusivity for NA (US and canada) all of whom become Coinlab's clients as of March 22 2013 (but that never happened), in exchange for essentially a non-compete from Coinlab affirming that they will not open a competing exchange in the US, or anything that looks like it.
This was a mutually advantageous agreement because Coinlab looks real and has fairly prominent backing, while Mt.Gox requires multiple hoops be jumped through before taking US funds. If Coinlab opened a competing firm, it would demolish the monopoly Mt.Gox has, so the potential behemoth partnered with the current behemoth to keep their exposure and costs low.
From my read, Gox breached the terms in several instances and before Coinlab can start an exchange, the contract needs to go away (or they'd be in breach themselves)
The 50 million in pre-approved damages does NOT just apply to mt. gox, but rather to either party in the event they breach the contract. In this case
K. Liquidated Damages. Both Parties hereby agree that it may be impossible to determine the monetary harm
suffered by the non-breaching Party in the event that MtGox breaches section F.l or in the event that CoinLab breaches
section F.2 and that therefore, after careful consideration, the Parties agree that reasonable damages for such breach
shall be $50,000,000 USD, an amount the Parties agree is reasonable and fair given the nature of the Agreement.
F. Exclusivity.
F. 1 During the Term, MtGox and Tibanne shall not grant anyone the right to use the Licensed Materials to provide
the Services, or any part thereof, in the Territory. The exclusivity granted herein shall apply strictly to Services
targeting the Territory and the CoinLab Customers (as defined below) and advertised and sold as such. It shall not
include the provision of Services to users of the Services who, depending on the interpretation or circumstances, may or
may not be considered CoinLab Customers.
F.2 During a period of two years from the start of the Term, CoinLab shall not, directly or indirectly (including
through legal entities ultimately owned by the same person or persons as CoinLab) provide services similar to the
Services on any website. During said two years period, CoinLab may provide the Services to the CoinLab Customers
only on the MtGox Website or on a CoinLab Website.
? JP
