Who controls litigation arising from infringement of Caption By Hyatt's Copyrighted Materials?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Copyrighted Materials or Confidential Information, or of any person's claim of any rights in any Copyrighted Materials or Confidential Information, and not communicate with any person other than us, our affiliates, and our and their attorneys, and your attorneys, regarding any infringement, challenge, or claim. We and our affiliates may take the action we and they deem appropriate (including no action) and control exclusively any litigation or administrative proceeding arising from any infringement, challenge, or claim or otherwise concerning any Copyrighted Materials or Confidential Information. You must sign any documents and take any other reasonable actions that, in the opinion of our and our affiliates' attorneys, are necessary or advisable to protect and maintain our and our affiliates' interests in any litigation or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Copyrighted Materials and Confidential Information. We will reimburse your reasonable out-of-pocket costs for taking any requested action. We need not participate in your defense nor indemnify you for damages and expenses you incur if you are a party to any administrative or judicial proceeding involving any Copyrighted Materials or if the proceeding is resolved unfavorably to you.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 68–71)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Caption By Hyatt and its affiliates maintain exclusive control over any litigation or administrative proceedings that arise from infringement, challenges, or claims related to its Copyrighted Materials or Confidential Information. This means that Caption By Hyatt has the sole discretion to decide whether to pursue legal action, how to conduct the litigation, and whether to settle.
As a Caption By Hyatt franchisee, you are required to immediately notify Caption By Hyatt of any potential infringement or challenges to the use of Copyrighted Materials or Confidential Information. You are also obligated to refrain from communicating with any party other than Caption By Hyatt, its affiliates, their attorneys, and your own attorneys regarding such matters. Furthermore, you must sign any documents and take any actions deemed necessary by Caption By Hyatt's attorneys to protect their interests in any litigation or proceeding. Caption By Hyatt will reimburse your reasonable out-of-pocket costs for taking any requested action.
However, Caption By Hyatt is not obligated to participate in your defense or indemnify you for damages and expenses if you are involved in any administrative or judicial proceeding concerning the Copyrighted Materials, especially if the proceeding is resolved against you. This allocation of control and responsibility is typical in franchising, where the franchisor needs to protect its brand and intellectual property, but franchisees bear some risk related to legal proceedings. Prospective franchisees should be aware of these conditions and consider them carefully before investing in a Caption By Hyatt franchise.