Difference between License Agreement and Concession Agreement

If, for any reason, the franchisor refuses to enter into a contract for a new term, but within one year after the expiry of the contract with the franchisee, has entered into an agreement with another person under which the franchisee has obtained the same rights as the franchisee under the terminated contract. Under the same conditions, the franchisee has the right, at his judicial choice, to demand from himself the transfer of the rights and obligations arising from the contract concluded and the reimbursement of losses caused by the refusal to renew the contract with him or only the replacement of these losses. This is a serious guarantee of stability: neither the user nor the copyright owner is interested in arbitrarily interrupting the established relationship. Termination of the license agreement has no such consequences. The legislator`s authorization to apply the rules on licensing agreements to franchising is not sufficient to confuse these forms of contract. In the Civil Code of the Russian Federation, there are many cases of application of standards for other contracts to independent types of contracts: loans and leasing, exchange and sale and purchase, provision of compensation services and conclusion of contracts. When preparing a license agreement, the parties to the license agreement have the right to combine the terms of agreements of different types (Article 1236, paragraph 3, of the Civil Code of the Russian Federation). Within the European Union, the award of concessions by public authorities is subject to regulation. Works concessions have been subject to procurement rules for some time now, as Directive 2004/18/EC of the European Parliament and of the European Council on public procurement applies to works concessions and the award of service concessions of cross-border interest is subject to the principles of the Treaty on the Functioning of the European Union. However, on 26 February 2014, the European Parliament and the European Council adopted a new Directive 2014/23/EU on the award of concessions[4], which obliged EU Member States to adopt national legislation for the award of concession contracts amounting to EUR 5 186 000 awarded from 18 April 2016. It has reduced delays and costs in implementing these agreements. But the excessive rigidity of the Wadlard structure undermines the interests of private companies and prevents them from investing in the infrastructure sector. Efforts should be made to allay fears of misallocation of risk and to allow for the renegotiation of concession contracts in accordance with the recommendations of the Kelkar Committee report.

Within the European Union, the award of concessions by public authorities is regulated by a regulation. Works concessions have been subject to public procurement rules for some time now, as Directive 2004/18/EC of the European Parliament and of the European Council on public works concessions is applied and cross-border service concessions are subject to the principles of the Treaty on the Functioning of the European Union. On the 26th. However, in February 2014, the European Parliament and the European Council adopted a new Directive 2014/23/EU on the award of concession contracts[4], which obliged EU Member States to implement their national legislation for the award of concession contracts for more than EUR 5 186 000 awarded from 18 April 2016. Utilities such as water supply can be operated in concessions. In the case of a public service concession, a private company enters into an agreement with the government on the exclusive right to invest, maintain and exercise in a public service (e.B. A concession contract is a contract that gives a company the right to operate a particular business in the jurisdiction of one government or on the ownership of another company under certain conditions. Concession contracts are often contracts between the non-state owner of an entity and a concessionaire or concessionaire. The agreement grants the concessionaire the exclusive right to operate its business in the facility for a certain period of time and under certain conditions. The wording used in practice of the form “All rights are transferred”, “all copyrights are transferred to the user” must be interpreted as a factually contradictory condition for the subject matter of the contract, which should lead to the recognition of the contract as not concluded and anticipate the legal uncertainty of the licensee.

Depending on what the law says in respect of an area, the concession may either allow the authority to retain or retain ownership of the assets, or pass to the concessionaire and return ownership to an authority at the end of the term of its concession, or the authority and the concessionaire own the facilities. Commercial concession agreement (franchise) or license agreement A commercial concession agreement is also known as a franchise agreement or simply a franchise agreement. At its core, franchising is the “sale” of a type or system of business activity and trade-related designation. With the help of franchising, networks are created that operate under the same name, produce the same goods or provide the same services. On the website of the Russian Franchising Association www.rarf.ru/, you can learn more about franchising in Russia and even see the possibilities of concluding such an agreement. You will also find different definitions of franchising that reveal it. Economic essence For example, franchising is the cloning of a successful business. The commercial concession agreement and the license agreement are also characterized by different directions: a license agreement, unlike a franchise agreement, does not pursue the objective of replacing the licensor with a licensee in relations with third parties, but focuses only on the distribution of rights and obligations between counterparties with regard to the use of a particular intellectual property.

Holder of the rights of the concession contract The franchisor and the franchisee are often faced with the question of which agreement to conclude – a commercial concession agreement or a license agreement, which of them most fully regulates the relations between the parties in the field of franchising and whether there are differences between them. Also check the document confirming the licensor`s right to dispose of the subject matter (patent, etc.). Suppose the licensor obtained the rights as a result of the agreement. In this case, make sure that the transaction is valid and that the transfer of rights has been made without violation. If it turns out that the licensor has unlawfully disposed of the object, the rightholder may also claim damages from the licensee. A franchise agreement and a license agreement have different purposes The new law pays attention to the author`s ownership guarantees in the case of a sublicense agreement, but the question of what rules to apply to a sublicense agreement remains unresolved. We believe that in deciding on this question, it is necessary to start from Article 5 of the Civil Code, which provides for the application of the norm in civil law, which governs similar relations (analogy of the law) to relations that are not directly regulated by legislative acts or by the agreement of the parties, and to apply the rules of the license agreement. Thus, a commercial concession contract is an independent agreement whose object differs from that of a licensed agreement. Additional franchising regulations are limited and can only affect the relationships between the use of rights transferred to RIA.

This regulation exists only because the commercial concession derives from the license, but once “grown” until separation. The license agreement can be both paid for and free of charge (if provided for in the contract). A commercial concession contract is always cumbersome. One of the essential conditions for the author`s consent is first and foremost its purpose. Since the copyright agreement should provide for certain uses of the work in accordance with Article 45(2) of the Law, the subject matter of the copyright agreement should be recognised in a certain way (manner) of using a particular work already created. The difference between a license agreement and a commercial concession agreement (franchising) lies not only in their names, but also in a number of characteristic characteristics of each of them. In the article, we will take a closer look at these signs and also tell you what the similarities of such contracts are and why they are sometimes confused. In several countries (France, Switzerland, Belgium), a commercial concession contract – ÑÐÐ3/4ncession ÑÐÐ3/4 commercial – refers to what is usually called in national case law a distribution agreement (exclusive contract). Under the latter, one party (producer, concessionaire) grants the other party (exclusive distributor, concessionaire) the right to the exclusive distribution, placement, advertising, sale of its goods in certain territories whose limits are agreed in the contract.

Russian arbitration practice often confuses a commercial concession agreement with a distribution agreement. Thus, the decision of the FAS of the Moscow District of 4 November 1999 states: “On 8 November 1999. In May 1997, an agreement was signed between the applicant and the defendant for cooperation and the granting of exclusive distributor status. After examining the circumstances of the case and analysing the terms of the contract concluded, the arbitral tribunal correctly concluded that the real intentions of the parties were to conclude a commercial concession contract, the object of which was the transfer by the claimant of the exclusive right to sell the medical device to the defendant. .