Does Crown Gold Exchange have an obligation to protect any of its copyrights?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Crown Gold Franchising shall defend Franchisee (at Crown Gold Franchising's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Crown Gold Franchising will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Crown Gold Franchising if Franchisee becomes aware of any possible infringement of a Mark by a third party. Crown Gold Franchising may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Crown Gold Franchising shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 27–28)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, Crown Gold Franchising retains the exclusive right to control any prosecution or defense of any action related to possible infringement of the Marks. If a franchisee uses the marks in accordance with the agreement, Crown Gold Franchising will defend the franchisee (at Crown Gold Franchising's expense) against any action by a third-party alleging infringement by the franchisee's use of a mark. Crown Gold Franchising will also indemnify the franchisee for expenses and damages if the action is resolved unfavorably to the franchisee.
This means that Crown Gold Exchange takes responsibility for protecting its trademarks against infringement, provided the franchisee is using them correctly. This protection extends to defending the franchisee in legal actions and covering expenses if the franchisee incurs damages due to trademark infringement.
For a prospective franchisee, this is a significant benefit. It reduces the risk and cost associated with potential trademark disputes. However, it's crucial to adhere to Crown Gold Exchange's guidelines for using the trademarks to ensure they are protected under this clause. Franchisees should promptly notify Crown Gold Franchising if they become aware of any possible infringement of a Mark by a third party.