WEDNESDAY, 5 MARCH 2008
Franchising in Ukraine: it can be done!
In "Commercial Concession Agreements and IP Rights", an article circulated by International Law Office yesterday, Anna Tsirat of Ukrainian Law Firm Jurvneshservice writes on the legal and commercial position of business format franchising in Ukraine. she explains:
The author then discusses the implications arising from compliance with the Law on the Protection of Rights in Marks for Goods and Services, the Law on the Protection of Rights in Inventions and Utility Models, the Law on the Protection of Rights in Industrial Designs and the Law on the Protection of Literary and Artistic Works. Thereafter, she describes the formalities and requirements that govern licences, the role of the Civil Code and issues such as validity termination. She concludes:
"Until recently, Ukrainian legislation did not explicitly recognize the concept of franchising, but this did not mean that franchise agreements could not be concluded in Ukraine. Article 4 of the Civil Code states that civil rights and liabilities may arise not only on the basis of national legislation, but also as a result of actions performed by natural and legal persons which are not explicitly regulated by law, but which give rise to rights and liabilities under general civil law principles".
"Like its Russian equivalent, the code requires the franchisor to assume joint and several liability for the franchisee’s sale of goods and services. This requirement has proved an obstacle to franchising agreements in Russia and may impede the growth of the sector in Ukraine.
Posted by: Jeremy Phillips @ 05.48
Tags: Franchising, Ukraine,