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Despite controversy, Pizza Hut
is continuing with plans to place their logo on the side of the
Proton rocket scheduled to launch the Zvezda service module to the
International Space Station in July. Rosaviacosmos and SMC
continue to dispute who has exclusive advertising rights for
Russia’s space program. Pizza Hut contracted to place their logo
on the side of the Proton in September 1999 from Rosaviacosmos.
In late-1997/early-1998 the
Russian Space Agency (RKA) could not be directly involved in
commercial activities and created Space Marketing Center (SMC) to
handle marketing and advertising. In January 1998, RKA signed an
agreement giving SMC “control over the international marketing
of space products and space services.”  The
agreement stated, in part, “RKA undertakes to never grant any
similar authority and functions to any third party on the
territory of the Russian Federation and abroad.”
In April 1998, RKA granted SMC
rights to market space advertising for the December launch of the
International Space Station’s Zarya control module. According to
Rosaviacosmos, SMC failed to meet its obligations and generated no
revenue for the agency.
In May 1999, RKA was
organizationally restructured and became Rosaviacosmos (Russian
Aviation and Space Agency). The changed status of the agency now
permits it to conduct its own commercial activity. This
restructuring was followed by a reconsideration of all the
agreements signed between RKA and its contractors. The agency
tried to alter its relationship with SMC. Rosaviacosmos claims
that when it tried to contact SMC it could not locate either its
address, nor its phone. In November 1999, Rosaviacosmos sent a
letter to Yuri Cherkasov stating the agency would like to cancel
the agreement. The letter was returned to sender. In January 2000,
Rosaviacosmos informed SMC that its failure to respond to the
previous letter, within a month, gave the agency the right to
cancel the agreement and cease any official relationship with the
former.
However, SMC has continued to
assert that it has exclusive rights to space advertising in Russia
and on May 30, threatened to sue Pizza Hut, claiming display of
the logo on a Proton launch vehicle would be illegal.
Pizza Hut, which has made no
comment on the dispute, continues its preparations.
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