What rights does Crown Gold Exchange protect regarding the use of its principal trademarks?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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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.
Item 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
Patents
We do not own rights in, or licenses to, patents that are material to the franchise.
Source: Item 13 — TRADEMARKS (FDD pages 26–27)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Crown Gold Exchange outlines specific protections for franchisees regarding the use of its principal trademarks. Crown Gold Exchange protects a franchisee's right to use the principal trademarks and defends against claims of infringement or unfair competition arising from their use. If a franchisee uses the trademarks in accordance with the franchise agreement, Crown Gold Exchange will defend the franchisee (at its expense) against any legal action by a third party alleging trademark infringement. Additionally, Crown Gold Exchange will cover expenses and damages if the legal action is resolved unfavorably to the franchisee.
However, the franchise agreement obligates franchisees to notify Crown Gold Exchange of any use of, or claims of rights to, a trademark that is identical or confusingly similar to the licensed trademark. While franchisees must report such instances, Crown Gold Exchange is not required to take any affirmative action upon receiving such a notification. Crown Gold Exchange retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee. Furthermore, Crown Gold Exchange may require a franchisee to modify or discontinue using a trademark, but the franchisee will bear the expense of doing so.
Crown Gold Exchange states that it is unaware of any superior prior rights or infringing uses that could materially affect a franchisee's use of the principal trademarks. The principal trademark that Crown Gold Exchange licenses to franchisees is owned by its affiliate, WAM Gold, LLC, and is registered on the Principal Register of the United States Patent and Trademark Office under registration number 4765544, with a registration date of June 30, 2015. This registration indicates that the trademark is legally protected and recognized by the U.S. Patent and Trademark Office.