Is Chem Dry required to protect my right to use the patents or copyrights?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
CDI is not required to protect your right to use the patents or copyrights or to protect you against claims of infringement or unfair competition arising out of your use of any of the patents or copyrights. You must notify CDI immediately in writing of any apparent infringement or challenge to your use of any of the patents or copyrights, or of any claim by any person of any rights in any of the patents or copyrights, and may not communicate with anyone other than CDI, CDI's attorneys and your attorneys in connection with any such infringement, challenge or claim. CDI will take such action as it, in its sole discretion, deems appropriate and will have the right to exclusively control any litigation, U.S. Patent and Trademark Office proceeding or any other administrative proceeding arising from such infringement, challenge or claim or otherwise relating to any of the patents or copyrights. You must sign any instruments and documents, provide such assistance and take any action that, in the opinion of CDI's attorneys, may be necessary or advisable to protect and maintain its interests in any litigation or U.S. Patent and Trademark Office or other proceeding or otherwise to protect and maintain CDI's interests in or any of the patents or copyrights.
If it becomes advisable at any time in CDI's sole discretion for CDI and/or you to modify or discontinue the use of subject matter covered by any patent or copyright, you must comply with CDI's directions within a reasonable period of time after receiving notice. However, CDI is not obligated to reimburse you for any expenses or loss of revenue or goodwill arising from any modification or discontinuation of the subject of any patent or copyright. (See Franchise Agreement – Section 4)
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 48–50)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry is not required to protect a franchisee's right to use patents or copyrights. Furthermore, Chem Dry is not obligated to protect franchisees against claims of infringement or unfair competition that may arise from the use of these patents or copyrights. This means that as a Chem Dry franchisee, you assume the risk of any legal challenges related to the use of the brand's intellectual property.
However, the FDD stipulates that franchisees must immediately notify Chem Dry in writing of any apparent infringement or challenges to the use of patents or copyrights. Franchisees are also required to inform Chem Dry of any claims made by others regarding rights to these patents or copyrights. Franchisees are instructed to communicate only with Chem Dry, their attorneys, and Chem Dry's attorneys regarding such matters. Chem Dry retains the exclusive right to control any litigation, U.S. Patent and Trademark Office proceedings, or other administrative proceedings related to infringement, challenges, or claims concerning the patents or copyrights.
As a Chem Dry franchisee, you may be required to sign documents, provide assistance, and take actions deemed necessary by Chem Dry's attorneys to protect the company's interests in any legal or administrative proceedings related to its patents or copyrights. If Chem Dry decides that modifications or discontinuation of the use of subject matter covered by any patent or copyright are necessary, franchisees must comply with Chem Dry's directions within a reasonable time frame. However, Chem Dry is not obligated to reimburse franchisees for any expenses, loss of revenue, or goodwill resulting from such modifications or discontinuation. This arrangement places the responsibility and cost of defending intellectual property rights primarily on Chem Dry, while requiring franchisees to cooperate and comply with their decisions.