Gyeonggi Province conducted a comprehensive investigation into trademark rights of franchise stores within the province and found that 459 cases were inconsistent. As a result, Gyeonggi Province has decided to strengthen reliability measures.
According to Gyeonggi Province on August 6, in order to improve the accuracy of trademark information, which is a key factor in brand competitiveness, a total of 25 'Fair Trade Guardians' were deployed to conduct a full survey. The results showed that out of 2,910 cases, 459 cases (16%) had discrepancies between the franchise disclosure documents and the trademark registration information registered in the Intellectual Property Information Search Service.
This inspection was carried out by comparing the trademark information stated in the disclosure documents with the trademark registration status on the Intellectual Property Information Search Service (KIPRIS) from May 12 to June 30. Out of a total of 2,910 cases, 2,451 cases (84%) were consistent, while 459 cases (16%) were found to be inconsistent.
The main types of inconsistencies were as follows: ▲ Failure to reflect post-application registration status (161 cases), ▲ Failure to reflect extension of expiration date (154 cases), ▲ Failure to reflect abandonment or rejection of trademark rights (91 cases), ▲ Simple clerical errors (37 cases), and ▲ Inability to search on KIPRIS (16 cases). Among these, 107 cases involving failure to reflect abandonment or rejection of trademark rights and cases that could not be searched were designated as high-priority cases for intensive management due to heightened concerns over potential harm to franchise owners.
Gyeonggi Province plans to provide administrative guidance to franchise headquarters with information discrepancies. These franchise headquarters are required to submit revised registration to Gyeonggi Province by August 31. If they fail to comply, the province will impose fines.
This measure is expected to improve the accuracy of trademark information in disclosure documents, prevent potential harm to prospective franchisees, and enhance transparency in franchise transactions.
Seo Bongja, Director of the Fair Economy Division of Gyeonggi Province, stated, "We will continue to regularly inspect key items in disclosure documents so that prospective franchisees can make rational decisions based on reliable information."
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