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Civil law. Part II. The concept and content of know-how (license agreement granting the right to use a production secret) (the most important)

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112. CONCEPT AND CONTENT OF KNOW-HOW (LICENSE AGREEMENT ON GRANTING THE RIGHT TO USE A PRODUCTION SECRET)

Know-xay - information of any nature intended for the professional activities of citizens and legal entities (technical, economic, organizational and others), to which third parties do not have free access legally and the owner of which takes measures to protect their confidentiality.

Know-how for Russian legislation is a new object of law. Regulated by part 4 of the Civil Code of the Russian Federation.

When an exclusive right to know-how arises and is exercised, its registration or compliance with any other formalities is not required.

The author of the exclusive right to know-how has the right to transfer the exclusive right to know-how to another person under an agreement or to allow its use to another person under a license agreement (issue a license).

The subject such an agreement is know-how, therefore an essential condition of such an agreement is a description of the transferred know-how. In the case of a license, the exclusive right to know-how is retained by the right holder.

By the parties of the license agreement are the licensor (the owner of the exclusive right to know-how) and the licensee (the person having the right to use the know-how).

Form the contract must be in writing.

Both the licensor and the licensee are obliged to keep the know-how confidential throughout the term of the agreement, and the licensee - even after the expiration of the know-how license agreement.

Using know-how is its use for industrial, technical, economic, organizational and other purposes, in particular:

▪ in manufactured products;

▪ during the manufacture of a product;

▪ when implementing economic and organizational decisions.

A person who illegally received information about know-how is not entitled to use it. When disclosing or using this information, the infringer is obliged to compensate for the losses caused to the right holder. The same responsibility is imposed on employees who divulged information about know-how contrary to an employment contract, and on contractors who did so contrary to a civil law contract.

Illegal disclosure or use of information about know-how without the consent of its owner, committed out of mercenary or other personal interest and causing large damage, entails criminal liability (Article 183 of the Criminal Code).

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