business deal entertainment

Posts Tagged ‘Licensing’

In general, Franchise Business, Business Opportunity (BO) and the license have the same meaning as a concept of partnership in business. That is, there are two parties, the giver and the recipient the right to equally achieve the benefits of cooperation is mutual trust partnership. Three models of the business concept also has similarities in terms of risk level for investment enthusiasts, namely minimizing factors that previous failures have been taken over by the giver of rights through proof of business or brands within a certain time period in the early stages.

In the three business models also have similarities in terms of support, which the giver has a right of necessity to support the recipient’s rights in order to run a business to succeed.

However, there is a difference between Franchising, Business Opportunity (BO) and the very principle of licensing each concept. But, now it’s a bit difficult for us to know where the franchise, which license and which ones actually BO. According to Utomo Njoto, Franchising expert, there are 6 (six) things to be able to distinguish all three: First, from the aspect of the brand; franchise and license to use trademarks owned by the franchisor or licenses, but if BO does not have to use a mark owned by the selling BO.

Second, focus. Franchise focus on business systems. Licensing is more focused on intellectual property rights (IPR). While the BO should be talking about a package of business (start-up package) as there are machines, raw material supply it, and someone taught to start a business but the brand can own brands.

In the franchise must have support systems, no pre operational, pre launch, launch and there is no supervision after launching.

Third, the marketing communication. Now the franchise is a central element. Full advertising and national levels spending funds derived from the franchisor, but if BO does not have to license and centralized, in fact, they actually no right to take a full advertising.

Fourth, IPR-related documents. In Indonesia, a franchise that may be in the form of letter of application for registration of trademarks. Should be and actually has a certificate, but because in Indonesia the process is long it may be in the form of letter of application for registration of trademarks. As for the brand license must be certified brand.

Fifth, the related regulations. In franchising there is PP which there must arrange registration STPW (Franchise Registration Certificate) receiver and giver of the franchise. On the license it is Law No. Chapter 15 licensed brands and in Article 43 and 49 whose content in terms of recording the license must have a license agreement.

Sixth, the issue of sanctions. In franchising there is a written warning three times and a maximum fine of Rp 100 million. While the trademark license is not too tight at this time because the Department of Justice is formulating PP. In BO rules unclear.