What is a first-level authorized company?

Company authorization refers to the authorization to entrust others or companies to act as agents for a certain business. The company is the principal and the agent is the principal. The principal must do things within the scope of authorization and entrustment. The first-level authorization based on the trademark holder means that the trademark holder directly authorizes the merchants to sell their branded goods.

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The authorized operation of an enterprise is actually a kind of business control right obtained by signing contracts with other authorized enterprises for technology, management, sales and project contracting. It needs to sign a licensing contract, licensing contract, also called franchise contract, or technical authorization. It means that the licensor signs a contract with the licensee to allow the licensee to use the registered trademarks, patents and proprietary technologies unique to the licensor. In the licensing contract, the licensee shall pay the licensor the royalty according to the amount agreed in the contract. There are two payment methods, fixed payment and proportional payment.

The authorized operation of an enterprise is actually a kind of business control right obtained by signing contracts with other authorized enterprises for technology, management, sales and project contracting. It needs to sign a license contract. 1, meaning of license contract

License contract, also known as franchise contract, or technology authorization. It means that the licensor signs a contract with the licensee to allow the licensee to use the registered trademarks, patents and know-how unique to the licensor.

2. License contract transfer fee

In the licensing contract, the licensee shall pay the licensor the royalties according to the amount agreed in the contract. There are two payment methods, fixed payment and proportional payment.

3. Restrictive clauses in the license contract

In order to protect their own interests, the licensor often adds some restrictive clauses to the license contract. These clauses mainly include:

(1) yield and quality restrictions. To restrict the output level of products produced by using authorized trademarks, patents and technical know-how, and to ensure product quality, Licensor has the right to supervise the production process of Licensee's enterprises;

(2) product sales area restrictions. In order to prevent the licensee enterprise from infringing its interests outside the licensee, the licensor company usually stipulates in the license contract that the licensee enterprise shall not engage in production and sales activities outside the region;

③ Restrictions on the procurement of raw materials and spare parts. The licensing company stipulates in the licensing contract that the licensed enterprise shall purchase the required raw materials and spare parts from the licensing company or its designated suppliers when producing the authorized products.