Is Beverly Anns Cookie obligated to pursue infringing users of its patent?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We will defend you against any claim brought against you by a third party that your use of our patent in accordance with the Franchise Agreement that infringes upon that party's intellectual property rights. We may require your assistance, but you are not permitted to control any proceeding or litigation relating to our patent. We have no obligation to pursue any infringing users of our patent. If we learn of an infringing user, we may take any action appropriate we deem appropriate, but we are not required to take any action if we do not feel it is warranted. You must notify us within three days if you learn that any unauthorized party is using the patent. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving the patents. We are not required to participate in your defense nor are we required to indemnify you for expenses or damages in a proceeding involving a patent, patent application, or copyright licensed to you. You must also agree
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–48)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie is not obligated to pursue infringing users of its patent. The FDD states that while Beverly Anns Cookie may take action if it learns of an infringing user, it is not required to do so if it does not feel it is warranted.
This means that a franchisee cannot rely on Beverly Anns Cookie to actively police or enforce its patent rights against third parties who may be infringing on those rights. The decision to take action against infringers is entirely at Beverly Anns Cookie's discretion. However, if a franchisee becomes aware of any unauthorized party using the patent, they must notify Beverly Anns Cookie within three days.
Beverly Anns Cookie retains sole discretion to control any litigation or administrative proceeding involving the patents. While Beverly Anns Cookie will defend a franchisee against claims that the franchisee's use of the Beverly Anns Cookie patent infringes upon a third party's intellectual property rights, Beverly Anns Cookie is not required to participate in the franchisee's defense nor indemnify them for expenses or damages in a proceeding involving a patent, patent application, or copyright licensed to the franchisee.