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What is a first-level authorized company?

Company authorization refers to authorizing another person or company to act as an agent 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 by the principal. First-level authorization with the trademark holder as the source refers to the trademark owner directly authorizing merchants to sell their branded goods.

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The authorized operation of an enterprise is actually a way to obtain the rights and interests of the enterprise by signing contracts with other authorized parties on technology, management, sales, project contracting, etc. Some kind of management control. It needs to sign a license contract, also known as a concession contract, or technology authorization. It refers to a contract signed between the licensor and the authorized party, allowing the authorized party to use the licensor's unique registered trademark (trademark), patent (patent) and technical know-how (know-how). In the license contract, the authorized party shall The royalty is paid to the licensor according to the amount agreed in the contract. There are two payment methods for this fee, namely fixed payment and rate payment.

The authorized operation of an enterprise is actually a way to obtain some kind of management control over the enterprise by signing contracts with other authorized parties regarding technology, management, sales, project contracting, etc. It requires a license contract to be signed. 1. The meaning of a license contract

A license contract is also called a franchise contract, or technology authorization. It refers to the signing of a contract between the licensor and the authorized party, allowing the authorized party to use the licensor's unique registered trademark (trademark), patent (patent) and technical know-how (know-how), etc.

2. Transfer fee of license contract

In the license contract, the authorized party shall pay the royalty to the licensor according to the amount agreed in the contract. There are two payment methods for this fee, namely fixed payment and rate payment.

3. Restrictive clauses in license contracts

In order to protect their own interests, licensors often add some restrictive clauses to license contracts. These terms mainly include:

①Limitations on output and quality. Limit the output level of products produced using authorized trademarks, patents and technical know-how, and in order to ensure the quality of the products, the licensor has the right to supervise the production process of the authorized party;

②Product sales area restrictions. In order to prevent the authorized party's company from infringing on its own interests in areas other than the authorized party, the licensor company usually stipulates in the license contract that the authorized party company shall not engage in production and sales activities across regions;

③ Raw materials, Restrictions on parts procurement. In the license contract, the licensor company stipulates that when the licensee company produces the licensed products, it should purchase the required raw materials and parts from the licensor company or its designated suppliers.