Legal Landscapes: Ukraine – Franchise & Licensing
1. What is the current legal landscape for your practice area in your jurisdiction?
The intellectual property (IP) landscape in Ukraine has remained resilient and adaptive, even amidst the ongoing war and significant challenges facing the country. Despite the difficult circumstances, Ukraine’s IP system is fully operational: both the Ukrainian National Office for Intellectual Property and Innovations (UANIPIO) and the Appeals Chamber continue to function effectively, ensuring that registration and protection of IP rights are maintained without interruption.
Over the past few years, the sector has experienced numerous changes, including the “unfreezing” of deadlines for IP-related actions, which has helped rights holders safeguard their interests during periods of uncertainty. In practice, businesses can still rely on the Ukrainian IP system for both registration and enforcement of their rights, and the courts remain accessible for IP disputes.
Franchising and licensing in Ukraine are also functioning well, with the market having seen successful international and local projects. While the legislative framework is not exhaustive — franchising is regulated mainly through the Civil and Commercial Codes under the concept of a “commercial concession agreement” — the system is predictable and workable for foreign and domestic businesses alike. Franchise agreements must be in writing and typically involve the transfer of IP rights, such as trademarks, designs, and know-how.
Although there are some legal nuances and the absence of a dedicated franchising law, the practical aspects of entering into and operating franchise and licensing arrangements are well established. Foreign companies should ensure their IP is properly registered in Ukraine and pay attention to local requirements, but overall, the franchising and licensing environment is stable and business-friendly.
Importantly, Ukraine continues to move steadily toward alignment with EU standards in the field of IP. The country is preparing to implement a new, revolutionary law on trademarks, which is expected to bring significant changes and further harmonize Ukrainian legislation with European norms. This ongoing reform demonstrates Ukraine’s commitment to modernizing its IP regime and providing a reliable legal environment for both local and international businesses. In summary, despite the challenges of wartime, Ukraine’s IP, franchising, and licensing systems remain robust, operational, and open for business.
2. What three essential pieces of advice would you give to clients involved in your practice area matters?
First and foremost, we strongly recommend that clients closely monitor ongoing changes in Ukrainian legislation, particularly in the field of IP, franchising, and licensing. The legal landscape in Ukraine is evolving rapidly, especially in response to the ongoing war and the country’s commitment to aligning with EU standards. All relevant authorities and agencies remain fully operational and are actively implementing new solutions and procedures, even under martial law. Staying informed about these developments is crucial for ensuring compliance and protecting your business interests.
Secondly, it is essential to conduct thorough due diligence regarding the presence or involvement of Russian assets in your business activities. Given the active and ongoing process of sanctioning Russian individuals and companies, their assets are often frozen both in Ukraine and across the EU. We advise clients to not only keep track of legislative updates but also to carefully vet all counterparties, partners, and service providers. A deep audit of everyone you engage with is necessary to avoid inadvertent exposure to sanctioned entities, which could have significant legal and financial consequences.
Finally, we encourage both foreign and Ukrainian businesses to adopt a proactive and risk-based approach to compliance and business operations in Ukraine. This includes maintaining robust internal compliance systems, regularly reviewing contractual arrangements, and seeking local legal advice when entering new relationships or markets. In the current environment, flexibility, vigilance, and a commitment to best practices are key to navigating the Ukrainian market successfully and minimizing potential risks.
3. What are the greatest threats and opportunities in your practice area law in the next 12 months?
The ongoing war in Ukraine has profoundly affected the legal landscape and the daily lives of people across the country. For IP, franchising, and licensing, the environment is marked by rapid change and the need for constant vigilance. One of the greatest threats is the unpredictability of legal and business conditions, which requires lawyers and businesses to react quickly to new risks and opportunities. The functioning of courts has also been impacted, with significant changes in how force majeure is interpreted and applied. While war is generally considered a force majeure event, Ukrainian courts now require parties to prove its direct impact on their obligations, and such claims are assessed very selectively. This creates additional legal uncertainty for businesses seeking to rely on force majeure clauses.
Another major challenge is the ongoing process of sanctions against Russian individuals and companies. The freezing of assets and the need for careful due diligence on counterparties have become critical issues for both Ukrainian and foreign businesses.
Despite these challenges, there are also significant opportunities. Ukraine is steadily moving toward EU standards, with planned legislative reforms — such as the upcoming new law on trademarks — expected to modernize and harmonize the legal framework. For clients, this means a more predictable and transparent environment in the near future. As legal advisors, we closely monitor all developments and strive to proactively minimize risks for our clients, helping them adapt to new realities and seize emerging opportunities.
4. How do you ensure high client satisfaction levels are maintained by your practice?
At Baker McKenzie, client satisfaction is at the core of everything we do. As a leading global business law firm, we are committed to delivering commercially-oriented, practical advice that is tailored to the specific needs and ambitions of our clients. We put our clients first by actively listening, anticipating their needs, and providing solutions that are both innovative and grounded in deep sector knowledge. Our approach is always business-focused: we understand that our clients operate in fast-changing markets and require legal advice that supports their commercial objectives and helps them navigate complex regulatory environments.
We maintain high client satisfaction by fostering strong, long-term relationships and by being responsive, transparent, and proactive in our communication. Our teams are trained to deliver seamless service across borders and practice areas, leveraging our global reach and local expertise to provide integrated solutions for even the most complex matters. We regularly seek client feedback and use it to continuously improve our services, ensuring that we remain aligned with our clients’ evolving expectations and business goals.
Innovation is a key pillar of our client service. We have a dedicated practice focused on artificial intelligence and digital transformation, and we actively implement advanced technologies to enhance the quality, speed, and security of our legal services. Our award-winning AI initiatives, such as the BakerML applied AI team, enable us to streamline processes and deliver insights faster, while always prioritizing the highest standards of data protection and confidentiality. By combining cutting-edge technology with a deep understanding of business law, we help our clients stay ahead of the curve and achieve their strategic objectives with confidence.
5. What technological advancements are reshaping your practice area law and how can clients benefit from them?
Baker McKenzie is at the forefront of technological innovation in the legal sector, particularly in IP law. Our dedicated Machine Learning Group and applied AI practice (BakerML) are pioneering the use of artificial intelligence and machine learning to transform how legal services are delivered. These technologies enable us to automate routine processes, enhance the accuracy of legal analysis, and provide predictive insights that help clients make better, data-driven decisions. For example, our AI-powered tools streamline tasks such as global data breach notifications and regulatory compliance, allowing our lawyers to focus on complex, strategic matters while ensuring clients receive timely and actionable advice.
A standout example of our commitment to innovation is the 360° IP Solution — a next-generation platform developed specifically for managing complex, global IP portfolios. This solution integrates modern, secure, and intuitive technology with our market-leading legal expertise to deliver unparalleled efficiency and quality. The 360° IP Solution handles the full lifecycle of IP rights, from creation to commercialization, in a single, automated workflow. Clients benefit from a centralized, fully searchable repository of their IP assets, customizable dashboards, and advanced reporting features. The platform also incorporates AI and machine learning tools for predictive analysis, helping clients anticipate risks, optimize portfolio management, and respond proactively to regulatory changes.
By leveraging these technological advancements, our clients gain a significant competitive edge. They enjoy greater transparency, faster turnaround times, and more strategic insights into their IP assets. Our technology-driven approach not only reduces administrative burdens but also enhances the security and value of clients’ intellectual property. As the legal and regulatory landscape continues to evolve, Baker McKenzie remains committed to investing in cutting-edge solutions that empower our clients to navigate complexity, seize new opportunities, and protect their most valuable assets with confidence.
Author: Myroslava Koval-Lavok, Counsel at Baker McKenzie Ukraine BV, Registered Patent and Trademark Attorney