Prototypes and fuzziness are regarded in this paper as fundamental phenomena in the inherent logic of concepts whose relationship, however, has not been sufficiently clarified. Therefore, modifications are proposed in the definition of both. Prototypes are defined as the elements possessing maximal degree of membership in the given category such thatthis membership has maximal cognitive efficiency in representing theelement. A modified fuzzy set (m-fuzzy set) is defined on aclass (possibly self-contradictory collection) such that its core (the collection of elements with full membership) is aset (self-consistent collection) comprising the finite set of the prototypes. In this scheme of recursive representation the possibility of contradictions, which has been proven to be inevitable in the logic of concepts, islocalized. Finally a related model of the brain''s pattern recognition mechanism is briefly summarized.