Are there any pending infringement proceedings related to the Chocolate Fish Coffee trademarks?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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Determinations
There are no currently effective material determinations of the United States Patent and Trademark Office, the Trademark Trial and Appeal Board, or any state trademark administrator or court. There are no pending infringement, opposition, or cancellation proceedings.
Litigation
There is no pending material federal or state court litigation regarding our use or ownership rights in a trademark.
Agreements
Nzus, Corp, our affiliate, owns the trademarks described in this Item. Under an Intercompany License Agreement between us and Nzus, Corp, we have been granted the exclusive right to sublicense the trademarks to franchisees throughout the United States. The agreement is of perpetual duration. It may be modified only by mutual consent of the parties. It may be canceled by our affiliate only if (1) we materially misuse the trademarks and fail to correct the misuse, or (2) we discontinue commercial use of the trademarks for a continuous period of more than one year. The Intercompany License Agreement specifies that if it is ever terminated, your franchise rights will remain unaffected.
Protection of Rights
We protect your right to use the principal trademarks listed in this Item, and we protect you against claims of infringement or unfair competition arising out of your use of the trademarks, to the extent described in this section.
The franchise agreement obligates you to notify us of the use of, or claims of rights to, a trademark identical to or confusingly similar to a trademark licensed to you. The franchise agreement does not require us to take affirmative action when notified of these uses or claims. We have the right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
If you use our trademarks in accordance with the franchise agreement, then (i) we will defend you (at our expense) against any legal action by a third-party alleging infringement by your use of the trademark, and (ii) we will indemnify you for expenses and damages if the legal action is resolved unfavorably to you.
Under the franchise agreement, we may require you to modify or discontinue using a trademark, at your expense.
Superior Prior Rights and Infringing Uses
We do not know of either superior prior rights or infringing uses that could materially affect your use of the principal trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 29–31)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, there are no pending infringement, opposition, or cancellation proceedings concerning their trademarks. The FDD also states that there is no pending material federal or state court litigation regarding Chocolate Fish Coffee's use or ownership rights in a trademark. This indicates that Chocolate Fish Coffee is not currently involved in any legal disputes over its trademarks. The trademarks are owned by Nzus, Corp, an affiliate, and Chocolate Fish Coffee has the exclusive right to sublicense these trademarks to franchisees through an Intercompany License Agreement.
This agreement is perpetual and can only be modified by mutual consent. It can be canceled by Nzus, Corp if Chocolate Fish Coffee misuses the trademarks and fails to correct the misuse, or if Chocolate Fish Coffee discontinues commercial use of the trademarks for over a year. However, the agreement specifies that termination of the Intercompany License Agreement will not affect the franchisee's rights. Chocolate Fish Coffee also states that they protect the franchisee's right to use the principal trademarks and will defend and indemnify the franchisee against infringement claims arising from their use of the trademarks, provided the trademarks are used in accordance with the franchise agreement.
Chocolate Fish Coffee does not know of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The franchise agreement requires franchisees to notify Chocolate Fish Coffee of any identical or confusingly similar trademark uses or claims, but Chocolate Fish Coffee is not obligated to take action upon notification. They retain the right to control any administrative or legal proceedings involving the licensed trademarks. Chocolate Fish Coffee may require franchisees to modify or discontinue using a trademark, at the franchisee's expense, under the franchise agreement.
For a prospective franchisee, this means that Chocolate Fish Coffee is responsible for defending them against any legal action alleging trademark infringement, provided the franchisee uses the trademarks as specified in the franchise agreement. The franchisee is also entitled to indemnification for expenses and damages if any legal action is resolved unfavorably. However, franchisees should be aware that they may be required to modify or discontinue using a trademark at their own expense if Chocolate Fish Coffee deems it necessary.