Does All States M.E.D. have the right to control litigation over its copyrights?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not have an obligation to protect the copyrights or to defend you against claims arising from your use of the copyrighted items. You must notify us if any claim for copyright infringement is brought against you over materials in which we claim a copyright. We have the right to control litigation over our copyrights. We are not required to participate in your defense or indemnify you for expenses and damages in a proceeding involving a copyright licensed to you. Your rights in the franchise agreement would continue if we require you to modify or discontinue using the subject matter covered by the copyright.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 30–31)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, All States M.E.D. retains the right to control any litigation pertaining to its copyrights. These copyrights encompass the Operations Manual, website content, marketing materials, training resources, and other copyrightable elements integral to the All States M.E.D. system. While All States M.E.D. asserts copyright claims on these items, it has not formally registered them with the United States Register of Copyrights. Franchisees are permitted to use these items strictly as directed by All States M.E.D. while operating their franchised business and must cease usage upon request.
All States M.E.D. is not obligated to protect these copyrights or defend franchisees against claims arising from their use. Franchisees are required to notify All States M.E.D. of any copyright infringement claims made against them concerning materials for which All States M.E.D. claims copyright. However, All States M.E.D. is not required to participate in the franchisee's defense or cover their expenses and damages in any copyright-related legal proceedings.
If All States M.E.D. requires a franchisee to modify or discontinue using material covered by copyright, the franchisee's rights under the franchise agreement will remain in effect. This means that while All States M.E.D. maintains control over copyright litigation and the use of copyrighted materials, the franchisee's overall business rights are protected even if changes to those materials are mandated.