What is a concession? What is a concession contract?

What is a concession? It is understood as the transfer of deposits for the extraction of natural resources or enterprises for rent. In Russia, a commercial concession is the purchase of ideas and technology of business.

Concession is the essence of relations

At the heart of any business is an idea, in the development of which money is invested. It is not necessary to invent something yourself, it's enough to take the brand in its head and make profit on its basis. What is a concession? The definition is contained in the Civil Code, art. 1027. According to it, one party provides a set of exclusive rights, the second undertakes to pay and comply with the terms of their use. More common is the term "franchising".

Concession agreement - what is this in terms of timing? Parties have the right not to limit the duration of the agreement, but this almost never happens. The agreement is concluded between commercial organizations or entrepreneurs. As a common example, you can indicate "McDonald's". The company transfers technology, assists in the development of business to other entrepreneurs or organizations. In return, it receives a stable income. So it looks like a commercial concession. What is this for domestic entrepreneurs? In Russia, now many businesses or businessmen who have organized their business use franchising, and this system proved to be quite viable. And what is the concession of objects? This is the transfer of state or municipal property to entrepreneurs for temporary use by agreement. It is completely different from the commercial concession in fact.

Forms of franchising

In practice, several types of concession have been developed: marketing, sales, service and production. Sales franchising is created in order to expand the network to distribute their products. Trading is the opening of new stores under the same brand. Similarly in the field of services. The production form is the most complicated, because Implies the opening of the whole enterprise. Concession - a profitable event, because The brand owner can receive additional income without opening new branches, enterprises, etc. All this is done for him by others, while at the same time additional sources of income appear. The acquirers of rights have their own benefits - a ready-made business recipe with assistance in various aspects. Of course, we have to adhere to the rigid framework of doing business, but this is quite a feasible requirement.

Before the opening of the enterprise, a study is conducted and it is determined whether the goods or services will be popular in a particular locality, if it is a serious trademark. However, this is how giants of business operate, small companies are not so serious in this matter.

Exclusive rights as subject of the contract

So, what is a concession is now clear. But what are the exclusive rights? Exclusive rights are understood as possibilities for using a trademark, other brand attributes, production technology or services. Assistance is provided in the organization of business, consultations are held periodically, personnel training is provided.

The payment system is determined by the parties. It can be fixed. It includes remuneration for additional services, or pay for each of them separately. The boundaries of the use of rights are clearly outlined in the treaty. In particular, it is prohibited to introduce the slightest changes in technology, attributes, even if it causes damage. Of course, we are not talking about committing offenses. This is a short answer to the question of what a concession is.

Rights and obligations of the copyright holder

The law contains a general list of duties and rights. In each case, they find their concrete expression:

• Transfer of technical and other documentation for business;
• Consulting on issues arising in the course of business;
• Issuance of a license in accordance with the terms of the contract;
• Control the quality of products or services.

What are the rights of the franchise owner? The basic right is to receive payment for the services rendered. No less serious condition - the preservation of trade secrets.

Obligations and Rights of the User

Duties:

• Use the company name or commercial designation in accordance with the contract, in particular, fully withstand the design of premises, uniforms of employees, etc .;
• The level of quality of the goods or services rendered should not be less than that of the right holder;
• Production of the same volume of services and goods as the right holder;
• To store trade secrets, confidential information;
• To inform consumers that the activity is conducted on the basis of a concession.

The right to help is expressed in the organization of supplies of raw materials, equipment. The recipient pays for them directly. How and in what volume they are provided is due to the terms of the agreement.

In addition, the user has the right to extend the contract, if the work with him does not cause the copyright holder to complain. Refusal to extend entails a ban for the rightholder to enter into a similar agreement in the same area with another person. The restriction is valid for 3 years. You can bypass the restriction. You just have to pay the agreed amount to the former user. If the concession contract is extended, the position of the user can not be deteriorated.

How the agreement is concluded

How to make the concession contract valid? If the copyright holder is a foreign organization or a foreign citizen, it is necessary for him to obtain permission to conduct business. This is the responsibility of the Federal Tax Service. The document is drawn up in writing and registered in Rospatent.

Concession agreement - what is it, in the opinion of the department? This is a text on paper with signatures and requisites of the parties. The agreement sheets are numbered and stitched. The content is checked for compliance with legislation, if shortcomings are identified, documents are sent to the applicant for correction. Violation of the written form leads to the nullity of the agreement, its illegality. Absence of registration provides for other consequences - the contract is considered not concluded. No one has any rights or responsibilities in connection with this. Passage of the procedure can be a difficult stage, therefore it is desirable to involve an experienced lawyer in the field of intellectual law. Neglect of formalities will not allow any of the parties to defend their rights in the future.