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This website aims to provide useful legal information for those natural or legal persons who wish to initiate any kind of relationship with the Republic of Turkey - focusing on certain aspects related to international law and domestic commercial law. This website is not intended to describe in an exhaustive manner international law or domestic commercial law, but simply to place attention on the most practical and interesting aspects for those natural or legal persons wishing to enter into business relations with the country. This website has no political content: it is free and open to all individuals who wish to make a contribution in the field of civil, commercial and administrative law. For any information, clarification or suggestion, you can contact us at: mail@decapoa.com
In 2022, Turkey è been the 11th largest economy in terms of GDP per capita among countries with populations over 50 million, with an impressive average annual growth rate of 5.4 percent from 2003 to 2022.
The Turkish market can therefore be an excellent expansion space for international players.
Studio Legale de Capoa, thanks to its more than 30 years of experience in the field of international law, as well as to the close working relationships it maintains with qualified local professionals and native-speaking in-house associates, can offer entrepreneurs interested in operating in the country quick, efficient advice that is fully aware of the complexity of the Turkish legal-economic reality.
The protection of trademarks in the Republic of Turkey è is guaranteed both by domestic legislation and by the country’s accession to major international conventions in the field.
The protection of trademarks in Turkey è is mainly regulated by the new Turkish Industrial Property Code (No. 6769), which came into force on January 10, 2017.
Foreign entrepreneurs can apply for the registration of their trademark directly with the Turkish Patent and Trademark Office, accompanying their application with a reproduction of the trademark and an indication of the reference classes, according to the Nice Convention.
Please note that if the foreign entrepreneur does not have a permanent establishment in Turkey, è it is necessary to appoint a licensed trademark attorney/consultant in the country.
Generally, there are no limitations for registering foreign trademarks, unless one of the following conditions is met:
The Law also protects the so-called notorious trademark, i.e., that trademark which, although not registered, is so widespread in the market that it is associated by consumers with a particular product. With reference to the notorious trademark, the Law provides for the prohibition of registration of trademarks identical or similar to it, both in the case where they refer to products/services identical or similar to those to which the notorious trademark is connected, and in the case where they refer to different products: in the latter case, the prohibition operates provided that the registration of the trademark would be detrimental to the owner of the notorious trademark.
In procedural terms, national trademark filing is completed with the following process. After submission to the Trademark Office, the application is examined within 3-4 months. Once it has been verified as admissible, the Office initiates the publication of the application in the Official Trademark Bulletin. From this moment, within the period of 3 months, those interested in the registration may make an’opposition to it. In case such opposition takes place, the applicant è be allowed a right of reply within the period of 2 months. After the aforementioned time limits have expired, the proceeding shall be considered concluded and, on the basis of the application and any opposition or reply, the Trademark Office shall proceed or not proceed with the registration. The foreign trademark registered through the so-called national filing has an effect in the country equal to that of any other registered Turkish trademark. Registration is valid for 10 years and is renewable.
As of January 1, 1999, Turkey è became a contracting party to the Madrid Protocol: for the purpose of protection in Turkish territory of a trademark originally registered in Italy or the EU, the owner will therefore be able to avail himself of the centralized and simplified international registration process provided for in that Protocol. More specifically, the Madrid System provides that the filing of trademarks in one of the member states of the System itself, may, under certain conditions, be fully effective in the other states as well.
In this case, in order to register an Italian trademark in Turkey through the System procedure, è it is necessary to have filed the trademark with any Italian Chamber of Commerce or with the Intellectual Property Office of the’European Union;European Union and apply - jointly or even subsequently - for the extension of the registration in Turkey, through the World Intellectual Property Organization Office (i.e. WIPO), which will consequently register the trademark in the country as well.
The franchise contract è becoming increasingly popular in Turkey and is included in the category of so-called business contracts, joining the agency and distribution contracts.
As is well known - and in a nutshell - the franchise contract brings together a franchesee and a franchisor. The franchisor grants the franchesee the right to use and disseminate for commercial purposes its trademark and label, as well as the right to produce its products and market them. As a quid pro quo, the franchisee agrees to pay an amount calculated on the volume of business and to submit to a list of obligations of the franchisor whereby it will comply with the franchisor’s product manufacturing standards, the rates charged by the franchisor, the obligation to produce and/or market the products that the franchisor chooses to put on the market and the standards related to the setting up of the business premises.
A specific definition of the franchise contract è was by the Turkish Supreme Court of Appeals in Decision 2001/819, which ruled that: “Franchising is a long-term and continuous business relationship arising from the privilege given by the party holding the privilege right of a product or service to the second party to carry out the commercial business subject to the franchise right, by providing information and support regarding the management and organization of the business within a certain period of conditions and limitations. It is a contractual relationship between two parties independent of each other”.
The francising contract being, also for Turkey, an atypical contract, expressly governed by the Commercial Code (No.6102) or the Code of Obligations (No.6098), but the general provisions on contracts and obligations contained therein apply to the same, where possible.
The parties to the contract have wide latitude to draft clauses according to their convenience and organize their relations according to their need. Rules generally common to franchise contracts concern:
It is part of the franchisor's possibility of initiative: the placing on the market of new products to which the franchisee cannot refuse and the advertising of the brand. Sometimes for the’purchase of raw materials is added for the franchisee the’obligation to procure from the franchisor.
Franchise contracts often provide for the licensing, use and transmission of various elements of the franchisor's intellectual property, such as the trademark, design, corporate know-how, etc….
In this sense, the Turkish Law on the Protection of Intellectual Property guarantees – even for foreign companies - the registration and protection of trademarks in the country, preventing unauthorized use by third parties and providing a whole range of legal protections in case of possible infringement and/or unauthorized use, as well as the protection and protection of other industrial property rights, such as, but not limited to, patents.
Because franchise agreements mainly concern the marketing and distribution of products and/or services, they fall within the scope of Turkish competition law: such agreements are therefore subject to Competition Protection Law No. 4045. As such, franchise agreements or provisions therein that violate the Competition Law are considered invalid and the Competition Authority may impose fines.
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