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Licenses and franchises

Licenses and franchises

1. Licences

2. Franchise

3. Obtaining a license or a franchise

Responsible Authority: Mexican Institute for Industrial Property (IMPI).

www.impi.gob.mx

1. License

A license is the means by which the holder of a trademark, or in procedure of registration, authorizes the use of such right to one or more persons, regarding all or some products or services applied to such brand.

The license must be registered at the IMPI in order for it to be effective before third parties.

The holder of a license of use registered at the IMPI, except if otherwise provided, will have the authority to exercise the legal actions to protect the trademark rights, as if it were the holder of the trademark.

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2. Franchise

A franchise is the system by means of which a license holder, in addition to the granting of a trademark license, technical knowledge or technical assistance, will be capable to produce or sell goods, render services consistently, use the operation, commercial and administrative methods established by the franchisor, maintain the quality, prestige, and image of the products or services identified under such trademark.

Parties to the franchise agreement: the franchisor, who owns a determined trademark and the technology for selling goods and services, and assigns its use through a franchise agreement, and the franchisee, who acquires the right to sell the goods or services and to operate the trademark in question, along with the training, organization, and business management provided by the franchisor.

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3. Obtaining a License or a Franchise

An application must be filed before the Mexican Institute of Industrial Property. The application may be filed by any of the parties, and it must include:

•The franchisor's or licensor's name or corporate name, nationality, and address,

•The franchisee's or licensee's name or corporate name, nationality, and address,

•Duration of the license or franchise,

•Type of license or franchise,

•If the agreement reserves to the licensor, authorized user or franchisor, the authority to exercise the legal actions to protect the industrial property right subject matter of the operation,

•In respect of a license to use a trademark, the products and services which the license is granted for,

•Identification data of the representative, whenever the registration application is made through a representative.

The following appendix should be submitted:

•Two copies of the application, with autograph signature,

•Certified or signed copy of the agreement evidencing the license, authorization to use or franchise,

•Document evidencing the representative's capacity, if the case,

•Voucher of the fee payment, which for licenses will depend on the number of affected applications or records,

•Legalization of the documents proceeding from abroad, when necessary,

•Translation into Spanish of documents written in languages different from Spanish that are submitted with the request or promotion, if the case,

•List of applications or records involved in the license, since the registration of licenses for two or more applications subject to procedures or registered trademarks may be requested in one single promotion, when both the involved licensor and licensee are the same for all of them.

Resolution Term

The IMPI will issue a first answer regarding licenses and franchises registration applications or promotions, within the two months following its reception date or the date on which the requirements requested by the Institute are complied with.

When the requested registration does not proceed due to the lack of any requirement, the Institute will notify the applicant in order for such applicant to manifest as best serves its legal interest, within a two-month term.

For procedures: http://www.cofemer.gob.mx/wwwroot/BuscadorRFTS/DatosGenerales.asp?homoclave=IMPI-03-009&modalidad=2&identificador=1048923&SIGLAS=IMPI

Chapter VI of the Industrial Property Law: http://www.diputados.gob.mx/LeyesBiblio/pdf/50.pdf

Regulations to the Industrial Property Law: http://www.diputados.gob.mx/LeyesBiblio/regley/Reg_LPI.pdf

 

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