INT E L L E C TU A L

P RO P E RT Y R I G H TS .
PREPARED BY:
JIM EL ME RVIN VILLA SIN

ERICSON JARAPA
 INTELLECTUAL PROPERTY RIGHTS
• IT IS VERY VALUABLE BUSINESS ASSETS WHICH DO NOT ONLY CONTRIBUTE TO THE GENERAL PROFITABILITY OF A
BUSINESS BUT ALSO LEADS TO THE ADVANCEMENT OF THE INNOVATIVE AND TECHNOLOGICAL SECTORS OF EVERY
COUNTRY.

• IN A FRANCHISE AGREEMENT SEVERAL INTELLECTUAL PROPERTY RIGHTS ARE EXPLOITED SINCE THE TRANSFER OF
THOSE INTANGIBLE RIGHTS APPEARS TO BE THE BANE OF FRANCHISE AGREEMENT.

• THIS RIGHTS INCLUDE TRADEMARK, COPYRIGHT, PATENT AND TREAD SECRETS.

TRADEMARK
• IN A BUSINESS ENTERPRISE OR GOING CONCERN WHICH CAN BE LICENSED VIA
A FRANCHISE AGREEMENT.

• A TRADEMARK IS A SIGNIFIER WHICH IS CAPABLE OF DISTINGUISHING THE

GOODS AND SERVICES OF ONE COMPANY FROM THOSE OF ANOTHER.

• IT COMPRISES OF LOGOS, DESIGNS, DRAWING, SYMBOLS, TAGLINES, NUMBERS,

THREE-DIMENSIONAL FEATURES, OR A COMBINATION OF ANY OF THESE.

• IN A FRANCHISE AGREEMENT, THE FRANCHISOR USUALLY LICENCES THE USE OF

ITS TRADEMARK TO A FRANCHISEE THAT IN TURN PAYS A FEE OR ROYALTY FOR
SUCH USE.
 COPYRIGHTS
• THAT CAN BE IMPACTED IN A FRANCHISE AGREEMENT AND WOULD THUS REQUIRE SUFFICIENT
PROTECTION.

• A COPYRIGHT IS A LEGAL PROTECTION THAT AVAILS CREATORS AND ORIGINATORS OF WORKS ELIGIBLE
FOR PROTECTION.

• COPYRIGHTABLE WORKS IN A FRANCHISE AGREEMENT INCLUDE LITERARY WORKS LIKE OPERATION

MANUALS, RECIPES, SOURCE, CODES, MUSICAL, AUDIO VISUALS, AND SOUND RECORDING LIKE RADIO
JINGLES AND TELEVISION COMMERCIAL; ARCHITECTURAL WORKS LIKE THE TEMPLATE PLANS AND
DESIGN OF THE FRANCHISE BUILDING, SCULPTURAL WORKS LIKE MASCOTS ETC.

• IT IS IMPORTANT FOR FRANCHISORS TO REGISTER OR LODGE THEIR COPYRIGHTED MATERIALS IN THE

DEPOSITORY OF THE PRESCRIBED BODIES WITHIN THE JURISDICTION OF THE FRANCHISEE TO OBTAIN
BETTER PROTECTION OR IN ORDER TO FACILITATE ENFORCEMENT PROCEEDINGS.
PATENT
• IS AN EXCLUSIVE AND ASSIGNABLE INTELLECTUAL PROPERTY RIGHTS GRANTED TO AN
INVENTOR OVER HIS/HIS PATENTABLE INVENTION FOR A SPECIFIED PERIOD OF TIME.

• SOME FRANCHISOR POSSESS PATENTED INVENTION THAT ARE LICENSED TO FRANCHISEES

IN A FRANCHISE AGREEMENT.

• THERE INVENTION COULD BE IN THE FORM OF BUSINESS METHODS, COMPUTER SOFTWARE

APPLICATION, AND EQUIPMENT HARDWARE.

• FRANCHISE AGREEMENT SHOULD PRESCRIBE THE MODE OF UTILIZATION OF THE PATENTED

INVENTIONS OF THE FRANCHISEE IN ORDER TO PREVENT UNAUTHORIZED EXPLOITATIONS
 TRADE SECRETS OR
CONFIDENTIAL INFORMATION
• BASICALLY CONFIDENTIAL IN NATURE BUT IT IS NOT ALL CONFIDENTIAL INFORMATION THAT IS A
TRADE SECRETS.

• FOR INSTANCE, SUCH INFORMATION SHOULD POSSESS SOME COMMERCIAL VALUE AND CERTAIN
REASONABLE STEPS SHOULD BE TAKEN TO PROTECT SUCH INFORMATION FROM THE PUBLIC
ACCESS.

• IN A FRANCHISE AGREEMENT, THE CONFIDENTIAL INFORMATION OR TRADE SECRETS OF THE

FRANCHISOR COULD BE IN THE FORM OF ANY OF THE FOLLOWING; FINANCIAL OR TECHNICAL KNOW-
HOW, BUSINESS PLAN, IMPLEMENTATION STRATEGIES, DISTRIBUTION TECHNIQUES, OPERATION
MANUAL, PRICING TECHNIQUE, RECIPES, CUSTOMER LIST, CHEMICAL FORMULA ETC.
TRADE SECRETS OR
CONFIDENTIAL INFORMATION

• FURTHERMORE NON-COMPETE CLAUSES AND PROVISIONS RESTRICTING THE

FRANCHISEE FROM TAKING ADVANTAGE OF THE TRADE SECRETS OF THE
FRANCHISOR SHOULD BE LAID OUT IN THE FRANCHISE AGREEMENT TO PREVENT
THE FRANCHISEE FROM RESCINDING THE AGREEMENT IN ORDER TO ESTABLISH
A BUSINESS BASED ON PROTECTED INFORMATION OR FROM FURNISHING SUCH
INFORMATION TO THE COMPETITORS OF THE FRANCHISOR UPON TERMINATION
OF THE AGREEMENT.
HME05: FRANCHISING

THANK YOU