Following a recent proposal of Richard Borcherds to regard fusion as the
ring-like tensor product of modules of a {\em quantum ring}, a generalization
of rings and vertex operators, we define fusion as a certain quotient of the
(vector space) tensor product of representations of the symmetry algebra A. We prove that this tensor product is associative and symmetric up to
equivalence. We also determine explicitly the action of A on it, under
which the central extension is preserved. \\ Having given a precise meaning to
fusion, determining the fusion rules is now a well-posed algebraic problem,
namely to decompose the tensor product into irreducible representations. We
demonstrate how to solve it for the case of the WZW- and the minimal models and
recover thereby the well-known fusion rules. \\ The action of the symmetry
algebra on the tensor product is given in terms of a comultiplication. We
calculate the R-matrix of this comultiplication and find that it is
triangular. This seems to shed some new light on the possible r\^{o}le of the
quantum group in conformal field theory.Comment: 21 pages, Latex, DAMTP-93-3