Seminar on Legal Issues Related to Franchise Disputes Was Held at Shanghai Intellectual Property Court

On the afternoon of April 14, the seminar on legal issues related to franchise disputes was held successfully byShanghai High People's Court and Shanghai Intellectual Property Court, attended by Member of the Party Leadership Group of Shanghai High People's Court and President of Shanghai Intellectual Property Court, Wang Qiuliang, Member of the Party Leadership Group and Vice President of Shanghai High People's Court, Mao Ronghua, and Vice President of Shanghai Intellectual Property Court Li Shulan. Representatives of Commercial Department of Shanghai Municipal Commission of Commerce, professors from East China University of Political Science and Law, judge representatives from Case Acceptance Tribunal, No.2 Civil Tribunal and Intellectual Property Tribunal of Shanghai High People's Court, leaders and judge representatives from Intellectual Property Tribunal of Shanghai Intellectual Property Court, and leaders and judge representatives in charge of intellectual property work from Pudong New Area, Huangpu, Yangpu, Xuhui, Putuo and Minhang District People's Courts, totaling more than 40 people, were also present. President Wang Qiuliang extended a warm welcome to the guests on behalf of Shanghai Intellectual Property Court, and said that judicial regulation and promotion of franchising is of great practical significance to speed up the development of modern service industry and realize the goal of innovation-driven and transformational development in Shanghai. Through communications and discussions on this seminar, we may reach a consensus on issues in franchise disputes and thereby further improve their trial quality and efficiency. The participants also delivered speeches on the determination of legal characteristics of franchising, legal consequences of nondisclosure of "two direct-sale stores operated for one year", determination of agreed dissolution of franchise contracts and time of dissolution, acceptance and jurisdiction issues of cases involving disputes over franchise contracts, etc. Vice President Li Shulan pointed out that courts handle disputes over franchise contracts mainly for the purposes of regulating franchise activities andpromoting the healthy and orderly development of commercial activities. When hearing these disputes, judges should be familiar withrelevant laws and regulations, grasp the basic characteristics of franchising and the purpose, nature and characteristics of franchise contracts, distinguish them from general civil and commercial contracts, and followthe principles ofvoluntariness, fairness and good faith as well as basic regulations of the contract law. Vice President Mao Ronghua made a concrete analysis of the development trend of franchise mode, understanding of franchise relationship, effectiveness of franchise agreements and determination of agreement dissolution, and pointed out that courts at all levels should earnestly study and exactly understand relevant instructions, summarize trial experience to produce typical cases, listen to useful opinions on problems existing in franchise disputes and strengthen communication, analysis and judgment to resolve them.

 

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