Who controls litigation arising from infringement of the Proprietary Marks related to Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
may require you to destroy (with no reimbursement from us) all offending items reflecting that unauthorized use. You must notify us immediately of any apparent infringement or challenge to your use of any Proprietary Mark, or of any person's claim of any rights in any Proprietary Mark, 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, PTO proceeding, or other proceeding arising from any infringement, challenge, or claim or otherwise concerning any Proprietary Mark. 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 PTO or other proceeding or otherwise to protect and maintain our and our affiliates' interests in the Proprietary Marks. We will reimburse your reasonable out-of-pocket costs for taking any requested action.
If it becomes advisable at any time for us and/or you to modify, discontinue using, and/or replace any Proprietary Mark and/or to use one or more additional, substitute, or replacement trade or service marks, you must comply with our directions within a reasonable time after receiving notice.
Source: Item 13 — Trademarks (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Caption By Hyatt Franchise Disclosure Document, Caption By Hyatt and its affiliates have the exclusive right to control any litigation, PTO (Patent and Trademark Office) proceeding, or other action related to infringement, challenges, or claims concerning any Proprietary Mark. This means Caption By Hyatt decides whether to pursue legal action, how to conduct the litigation, and whether to settle. The franchisee must notify Caption By Hyatt immediately of any potential infringement or challenges to the use of any Proprietary Mark.
The franchisee is required to cooperate with Caption By Hyatt and its affiliates in protecting the Proprietary Marks. This includes signing documents and taking other reasonable actions deemed necessary by Caption By Hyatt's attorneys. Caption By Hyatt will reimburse the franchisee for reasonable out-of-pocket costs incurred while taking these requested actions.
Caption By Hyatt also states that they will defend the franchisee in any trademark infringement proceeding disputing the franchisee's authorized use of any Proprietary Mark, provided the franchisee has given timely notice and complies with Caption By Hyatt's directions. At their option, Caption By Hyatt and/or its affiliates may defend and control the defense of any proceeding arising from the franchisee's use of any Proprietary Mark. This indicates that while Caption By Hyatt maintains control, they also provide support and protection to franchisees regarding trademark issues.
This arrangement is typical in franchising, as the franchisor has a vested interest in protecting its brand and trademarks. By retaining control over litigation, Caption By Hyatt can ensure consistent and strategic enforcement of its trademark rights, which benefits the entire franchise system. However, it also means that franchisees must rely on Caption By Hyatt to take appropriate action and may not have direct control over the legal strategy.