(1) The form of expression of trade secrets in franchise The object of franchise rights is not protected by special law. The information that the franchisor adopts confidentiality measures and can bring economic or competitive advantages to the franchisor can be used as the trade secret of the franchisor. .
Article 2 of the Measures for the Administration of Commercial Franchising stipulates that: franchising refers to the operation of trademarks, trade names, business models and other operational resources that the franchisor will have the right to grant to others, and the franchisees shall use the franchisees in accordance with the contract. It is agreed to engage in business activities under the unified management system and pay the franchisees a franchise fee. The essence of franchising is that franchisors use their intellectual capital to combine with other people's monetary capital to expand their scale, expand market share, and increase brand influence. This mode of business operation can achieve the goal of mutual benefit and franchisor and franchisee. Franchise rights are the core of franchising, mainly consisting of trademarks, trade names, proprietary technologies, commercial channels, supply and demand information, and business management. Among them, registered trademarks, patents, and product packaging are traditional intellectual property rights granted by law to exclusive rights, which are regulated and protected by trademark law and patent law. The trade name is an important part of the company name and is regulated and protected by the corresponding provisions of the enterprise name management method. Proprietary technology, commercial channels, supply and demand information, business management know-how, product formula, process flow, business manual, etc. belong to the franchisor's trade secrets, which is a franchisor's own development or practical control can bring real or potential competition for it. Comprehensive information on strengths and economic advantages and taking confidential measures.
(II) Characteristics of trade secrets in franchising 1. The right subject of trade secrets has diversified characteristics. In general operation, everyone uses their own trade secrets. Based on competition considerations, everyone will take confidential measures to minimize the number of people who know and keep their trade secrets within a certain range. The way in which the franchise operates determines that the franchisor must use the franchise license to be used by the franchisee. In the case of trade secrets in the concession, the franchisor is the owner of the trade secret and the franchisee is the user of the trade secret, who are the right holders of the trade secret. The characteristics of the franchise determine the diversification characteristics of the rights of the business secrets in the franchise.
2. The characteristics of external use of trade secrets are obvious. In general operations, trade secrets are mainly used internally, and commercial secret rights are manifested by the possession, use and income of trade secrets. In franchising, the characteristics of commercial licenses for external licenses are obvious, and the right to trade secrets is mainly expressed as the licensee's license. Trade secrets are an intellectual property. The essence of legal protection of intellectual property rights is to encourage invention and creation, so that the results of human intellectual activities can be applied to relevant industries as soon as possible, bringing about industrial progress and economic development. The franchise business model is a model for the best use of trade secrets.
3. Trade secrets are easy to leak and difficult to protect. Based on the above two characteristics, there are many channels for leakage of commercial secrets in franchising. The complexity of the franchise system increases the difficulty of protection of trade secrets. Trade secret protection has become a difficult issue in franchise protection.
The significance of trade secrets to franchising (1) Trade secrets are the premise of the franchise system to maintain and the trademarks, trade names, store designs, and employee clothing in the franchise rights are only signs of external recognition of the franchise system, while business secrets are especially Product formulation, know-how, and operation are the key to ensuring the consistent quality of franchise products and services, and are the premise and foundation for the franchise system to be maintained. In the franchise, the license is not used. In the KFC and McDonald's stores in different locations, the taste of hamburger and fried chicken legs will be different, which is not in line with the franchise business operation mode.
(2) Trade secrets enable franchising to maintain its competition and economic advantage for a long time. Competition is the basic mechanism of the market economy. Business operators must be based on their invincible position. Trade secrets are their secret weapons. Franchising relies on its unique business model and unique formula to win the dominant position. If the secret formula and crafts of Coca-Cola or Quanjude are made public, the core competitiveness of its products and enterprises will be dealt a fatal blow, and the consequences are unimaginable.
(3) Trade secrets enrich the content of the concession and strengthen the protection of the intangible assets of the franchisor. The characteristics of the business secret determine the importance of the trade secret in the franchise. The traditional intellectual property rights in the franchise rights are the contents and extensions of the franchisor's intellectual achievements. There are intangible assets that determine the legal protection period and the franchisor has the legal monopoly power. The wide range of business secrets and the inclusiveness feature enrich the content of the concession and strengthen the protection of the franchisor's intangible assets. In addition to traditional intellectual property rights and trade names, franchise rights can be protected as trade secrets as long as they meet the conditions for the formation of trade secrets.
The speciality of trade secret protection in franchise The protection of trade secrets in franchise has the same side as the protection of general trade secrets, that is, the franchisor’s rights as a trade secret will be leaked to the conventional channels of trade secrets, such as the leakage of internal employees. The leakage of other collaborators, the third person to take appropriate measures to obtain the appropriate measures. However, in view of the importance of trade secrets to franchising, the danger of commercial secret disclosure to franchise, the complexity of franchise system, and the fact that the law protects the aftermath of trade secrets, it determines the franchisor’s protection of trade secrets. The different aspects of trade secret protection, that is, the franchisor needs to take targeted measures against the franchisee and its employees to protect their trade secrets. This is a special requirement for the protection of trade secrets in franchising.
Trade secrets are of great significance to franchising, so the protection of trade secrets in franchising has become a must in the franchise laws of various countries. Article 12 of the "Measures for the Administration of Commercial Franchising" promulgated by the Ministry of Commerce on December 8, 2004 states: "The franchisee has the obligation to keep trade secrets of franchisors"; Article 13 stipulates: "The franchise contract must include The content of the confidentiality clause; 21 stipulates: "After the franchise period and the termination of the franchise contract, the franchisee and its employees shall not disclose, use or allow others to use the franchisor's business without the consent of the franchisor. "Twenty-two Articles stipulates: "The franchise contract has not been signed with the franchisor, but the person and the applicant who knows the franchisor’s trade secrets through the information disclosure of the franchisor shall bear the obligation of confidentiality. Without the consent of the franchisor, Do not disclose, disclose or transfer the franchisor's trade secrets to others." These contents become the direct legal basis for the protection of trade secrets in franchising. The franchise contract is one of the contracts, so China's "Contract Law" becomes the legal basis for protecting and remedying trade secrets in franchising.
The most commonly used trade secret secrecy in franchise practice is to establish a trade secret confidentiality clause in the franchise contract, so that the franchisee and its employees bear the obligation to protect the trade secret. The general content of the confidentiality clause is: the scope of the license to use the trade secret; unless the trade secret has legally become known information, the franchisee may not use the trade secret during the entire license period and for a certain period after the end of the license; the franchisee during the license period No commercial secrets may be disclosed to third parties after the end of the concession period; the franchisee must require its employees to assume the same confidentiality obligations; the franchisee is obliged to return to the franchisor any experience gained in the implementation of the concession. The franchisor or other franchisee is also permitted to enjoy non-exclusive use of the technical secrets. In the franchise, if the franchisor's trade secret is infringed by the franchise, the franchisor may pursue the legal responsibility of the franchisee and its employees in accordance with the Contract Law. If the relevant obligor violates the contract during the contract period, the franchisor may pursue the liability for breach of contract according to the contract law. For the reason that the franchisee has not signed a franchise contract with the franchisor, but the relevant person who knows the franchisor's trade secret through the information disclosure of the franchisor shall bear the obligation of confidentiality. During the specific period after the end of the franchise, the franchisee and its employees shall be obliged to prohibit the competition. If the franchisor’s commercial secrets are used for commercial activities in violation of the obligation, the franchisor may pursue the legal liability for breach of the contractual obligations.
The protection of trade secrets by law is an after-the-fact relief protection. Moreover, according to the current laws on the protection of trade secrets in China, the subsequent infringement relief is based on the direct loss of the right holder. Trade secrets are the secret weapon of the franchisor. After the disclosure, the franchisor loses not only the economic benefits, but also the loss of competitive advantage and the destruction of the franchise system. These are not measured by direct economic benefits. The characteristics of the concession economy determine that the protection of trade secrets in franchising should be based on the franchisor's pre- and post-protection of the franchisee and its employees to prevent problems before they occur.
Article 2 of the Measures for the Administration of Commercial Franchising stipulates that: franchising refers to the operation of trademarks, trade names, business models and other operational resources that the franchisor will have the right to grant to others, and the franchisees shall use the franchisees in accordance with the contract. It is agreed to engage in business activities under the unified management system and pay the franchisees a franchise fee. The essence of franchising is that franchisors use their intellectual capital to combine with other people's monetary capital to expand their scale, expand market share, and increase brand influence. This mode of business operation can achieve the goal of mutual benefit and franchisor and franchisee. Franchise rights are the core of franchising, mainly consisting of trademarks, trade names, proprietary technologies, commercial channels, supply and demand information, and business management. Among them, registered trademarks, patents, and product packaging are traditional intellectual property rights granted by law to exclusive rights, which are regulated and protected by trademark law and patent law. The trade name is an important part of the company name and is regulated and protected by the corresponding provisions of the enterprise name management method. Proprietary technology, commercial channels, supply and demand information, business management know-how, product formula, process flow, business manual, etc. belong to the franchisor's trade secrets, which is a franchisor's own development or practical control can bring real or potential competition for it. Comprehensive information on strengths and economic advantages and taking confidential measures.
(II) Characteristics of trade secrets in franchising 1. The right subject of trade secrets has diversified characteristics. In general operation, everyone uses their own trade secrets. Based on competition considerations, everyone will take confidential measures to minimize the number of people who know and keep their trade secrets within a certain range. The way in which the franchise operates determines that the franchisor must use the franchise license to be used by the franchisee. In the case of trade secrets in the concession, the franchisor is the owner of the trade secret and the franchisee is the user of the trade secret, who are the right holders of the trade secret. The characteristics of the franchise determine the diversification characteristics of the rights of the business secrets in the franchise.
2. The characteristics of external use of trade secrets are obvious. In general operations, trade secrets are mainly used internally, and commercial secret rights are manifested by the possession, use and income of trade secrets. In franchising, the characteristics of commercial licenses for external licenses are obvious, and the right to trade secrets is mainly expressed as the licensee's license. Trade secrets are an intellectual property. The essence of legal protection of intellectual property rights is to encourage invention and creation, so that the results of human intellectual activities can be applied to relevant industries as soon as possible, bringing about industrial progress and economic development. The franchise business model is a model for the best use of trade secrets.
3. Trade secrets are easy to leak and difficult to protect. Based on the above two characteristics, there are many channels for leakage of commercial secrets in franchising. The complexity of the franchise system increases the difficulty of protection of trade secrets. Trade secret protection has become a difficult issue in franchise protection.
The significance of trade secrets to franchising (1) Trade secrets are the premise of the franchise system to maintain and the trademarks, trade names, store designs, and employee clothing in the franchise rights are only signs of external recognition of the franchise system, while business secrets are especially Product formulation, know-how, and operation are the key to ensuring the consistent quality of franchise products and services, and are the premise and foundation for the franchise system to be maintained. In the franchise, the license is not used. In the KFC and McDonald's stores in different locations, the taste of hamburger and fried chicken legs will be different, which is not in line with the franchise business operation mode.
(2) Trade secrets enable franchising to maintain its competition and economic advantage for a long time. Competition is the basic mechanism of the market economy. Business operators must be based on their invincible position. Trade secrets are their secret weapons. Franchising relies on its unique business model and unique formula to win the dominant position. If the secret formula and crafts of Coca-Cola or Quanjude are made public, the core competitiveness of its products and enterprises will be dealt a fatal blow, and the consequences are unimaginable.
(3) Trade secrets enrich the content of the concession and strengthen the protection of the intangible assets of the franchisor. The characteristics of the business secret determine the importance of the trade secret in the franchise. The traditional intellectual property rights in the franchise rights are the contents and extensions of the franchisor's intellectual achievements. There are intangible assets that determine the legal protection period and the franchisor has the legal monopoly power. The wide range of business secrets and the inclusiveness feature enrich the content of the concession and strengthen the protection of the franchisor's intangible assets. In addition to traditional intellectual property rights and trade names, franchise rights can be protected as trade secrets as long as they meet the conditions for the formation of trade secrets.
The speciality of trade secret protection in franchise The protection of trade secrets in franchise has the same side as the protection of general trade secrets, that is, the franchisor’s rights as a trade secret will be leaked to the conventional channels of trade secrets, such as the leakage of internal employees. The leakage of other collaborators, the third person to take appropriate measures to obtain the appropriate measures. However, in view of the importance of trade secrets to franchising, the danger of commercial secret disclosure to franchise, the complexity of franchise system, and the fact that the law protects the aftermath of trade secrets, it determines the franchisor’s protection of trade secrets. The different aspects of trade secret protection, that is, the franchisor needs to take targeted measures against the franchisee and its employees to protect their trade secrets. This is a special requirement for the protection of trade secrets in franchising.
Trade secrets are of great significance to franchising, so the protection of trade secrets in franchising has become a must in the franchise laws of various countries. Article 12 of the "Measures for the Administration of Commercial Franchising" promulgated by the Ministry of Commerce on December 8, 2004 states: "The franchisee has the obligation to keep trade secrets of franchisors"; Article 13 stipulates: "The franchise contract must include The content of the confidentiality clause; 21 stipulates: "After the franchise period and the termination of the franchise contract, the franchisee and its employees shall not disclose, use or allow others to use the franchisor's business without the consent of the franchisor. "Twenty-two Articles stipulates: "The franchise contract has not been signed with the franchisor, but the person and the applicant who knows the franchisor’s trade secrets through the information disclosure of the franchisor shall bear the obligation of confidentiality. Without the consent of the franchisor, Do not disclose, disclose or transfer the franchisor's trade secrets to others." These contents become the direct legal basis for the protection of trade secrets in franchising. The franchise contract is one of the contracts, so China's "Contract Law" becomes the legal basis for protecting and remedying trade secrets in franchising.
The most commonly used trade secret secrecy in franchise practice is to establish a trade secret confidentiality clause in the franchise contract, so that the franchisee and its employees bear the obligation to protect the trade secret. The general content of the confidentiality clause is: the scope of the license to use the trade secret; unless the trade secret has legally become known information, the franchisee may not use the trade secret during the entire license period and for a certain period after the end of the license; the franchisee during the license period No commercial secrets may be disclosed to third parties after the end of the concession period; the franchisee must require its employees to assume the same confidentiality obligations; the franchisee is obliged to return to the franchisor any experience gained in the implementation of the concession. The franchisor or other franchisee is also permitted to enjoy non-exclusive use of the technical secrets. In the franchise, if the franchisor's trade secret is infringed by the franchise, the franchisor may pursue the legal responsibility of the franchisee and its employees in accordance with the Contract Law. If the relevant obligor violates the contract during the contract period, the franchisor may pursue the liability for breach of contract according to the contract law. For the reason that the franchisee has not signed a franchise contract with the franchisor, but the relevant person who knows the franchisor's trade secret through the information disclosure of the franchisor shall bear the obligation of confidentiality. During the specific period after the end of the franchise, the franchisee and its employees shall be obliged to prohibit the competition. If the franchisor’s commercial secrets are used for commercial activities in violation of the obligation, the franchisor may pursue the legal liability for breach of the contractual obligations.
The protection of trade secrets by law is an after-the-fact relief protection. Moreover, according to the current laws on the protection of trade secrets in China, the subsequent infringement relief is based on the direct loss of the right holder. Trade secrets are the secret weapon of the franchisor. After the disclosure, the franchisor loses not only the economic benefits, but also the loss of competitive advantage and the destruction of the franchise system. These are not measured by direct economic benefits. The characteristics of the concession economy determine that the protection of trade secrets in franchising should be based on the franchisor's pre- and post-protection of the franchisee and its employees to prevent problems before they occur.
ORDRM® is a professional jewelry manufacturer which provide quality stainless steel Stud Earrings for retailer or wholesaler. We provide cubic zirconia stud earrings, crystal stud earrings, rose Gold Stud Earrings, etc. The material is 304 or 316L stainless steel. Available in silver color, gold, rose gold and black. The color on all earrings are PVD plated or IP plated. All our stud earrings are hypoallergenic, low reactivity, resistant to tarnish & excellent durability.
Welcome to visit our website for cheap stud earrings. With many styles to choose from, contact us and wholesale stud earrings now.
Stud Earrings
Stud Earrings,Gold Stud Earrings,Circle Stud Earrings,Heart Stud Earrings
Dongguan Original Dream Jewelry Co.,Ltd , https://www.ordrm.com