Pizza Pizza Corporation, a legal entity under the laws of the state of Delaware (USA), has entered into a commercial concession agreement with the entrepreneur Anufriev. According to the contract, the entrepreneur received the right to use the company name, business reputation of the company and the trademark of the corporation when selling products of the baking industry. The rights and obligations of the parties to the contract are determined by Russian law.
Anufriev appealed to the district administration at the place of residence and to the Russian Agency for Patents and Trademarks with the application for registration of the agreement of the commercial concession.
The administration refused to register the contract for the following reasons. First, the contract of commercial concession must be registered at the location of the right holder, and not the user. Secondly, the parties did not stipulate in the agreement the conditions on the transfer of documentation and information to the user, as well as advising the user and his employees on the exercise of the rights granted to him under the franchise agreement. The issuance of a license for the Pizza-Pizza trademark was not provided for. Thus, the parties did not agree on the essential terms of the contract of commercial concession, by virtue of which the contract is considered to be not concluded.
The Russian Patent and Trademark Agency reported that it could not register an agreement on the transfer of the right to use the trademark, since the Pizza Pizza trademark was not registered with the agency.
The law firm serving the Pizza Pizza corporation, in response to the request, Anufrieva said that, under Delaware law, trademarks can be protected without special registration. Registration of the agreement of commercial concession by the legislation of the state of Delaware is not provided at all.
Questions to the problem:
1. What actions should the parties take in this situation to legally competently formalize their relationship?
2. Analyze the arguments of the administration and the Russian Agency for Patents and Trademarks. What are the terms of the agreement of commercial concession?
3. What are the legal consequences if the right holder loses the exclusive rights to the industrial property object, the license for which is transferred to the user under the agreement of the commercial concession?

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