The exclusivity of an agreement is an important part of negotiating any business deal and plays a large role in licensing agreements and distributorship agreements. Making a distributorship agreement exclusive means that only the distributor with the exclusive right may sell the products. Similarly, an exclusive license means that only the licensee can use the license. This exclusivity provides a major business advantage, ensuring that the exclusive distributor or licensee will not face any competition from other companies distributing the same product or using the same license.