With whom is a Caption By Hyatt franchisee prohibited from communicating regarding any infringement of 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, a franchisee is restricted from communicating with certain parties regarding any copyright infringements. Specifically, if a franchisee becomes aware of any apparent infringement or challenge to their use of copyrighted materials, or any claim of rights to these materials, they must immediately notify Caption By Hyatt.
The franchisee's communication regarding the infringement, challenge, or claim is limited exclusively to Caption By Hyatt, its affiliates, their attorneys, and the franchisee's own attorneys. This restriction ensures that Caption By Hyatt maintains control over any legal proceedings or actions related to its copyrighted materials.
This requirement is fairly standard in franchising, as franchisors typically want to control the defense of their intellectual property. The franchisee must also sign documents and take reasonable actions deemed necessary by Caption By Hyatt's attorneys to protect the brand's interests. Caption By Hyatt will cover the franchisee's reasonable out-of-pocket costs for taking these actions. However, Caption By Hyatt is not obligated to defend the franchisee or cover damages if the franchisee is involved in an administrative or judicial proceeding concerning the copyrighted materials and the outcome is unfavorable to the franchisee.