BarentsNews.com

If foreign company is willing to provide a Russian company for remuneration with a system of exclusive rights, including right to a firm name, protected commercial information, trademark, service mark, etc. than Franchising Agreement between the parties shall be subject to state registration in Russia.

Such Agreement should be registered in the company registration body (tax office) where the franchisee (Russian user of foreign exclusive rights) is registered. In relation with third persons the parties of Franchising Agreement shall have the right to rely upon it only from the time of its registration. Changes of Franchising Agreement as well as its early termination should be also registered with the tax office.

Franchising Agreement for the use of an object protected by patent laws is subject to additional registration in the Russian Agency for Patents and Trademarks (the “Agency”). Franchising Agreement failing to comply with this requirement shall be considered as void. On 14 June 2003 the new Agency Order No.64 of 29 April 2003 came into force. The Order regulates procedure for registration of Franchising Agreements in the Agency, registration of changes to Franchising Agreements as well as early termination of Franchising Agreements.

Sergei Mashkarenko.
Lawyer
Tel/Fax: +7812-174-59-50