What is a Crowne Plaza licensee required to do if they become aware of a potential infringement of the Crowne Plaza trademark?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee shall notify IHG immediately of (i) an infringement, or a challenge to Licensee's use of any of the Marks; (ii) any objections, demands,
controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which Licensee becomes aware; and, (iii) any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which Licensee becomes aware. IHG or its Affiliates will have the sole and exclusive right to handle disputes with third parties concerning use of all or any part of the Marks or Brand System, and Licensee will, at its reasonable expense, extend its full cooperation to IHG in all such matters. All recoveries made as a result of disputes with third parties regarding use of the Marks or Brand System or any part thereof shall be for the account of IHG. IHG need not initiate suit against alleged imitators or infringers, and may settle any dispute by grant of a license or otherwise. Licensee will not initiate any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a licensee must immediately notify IHG (the franchisor) if they become aware of any potential trademark infringements. This includes not only direct infringements or challenges to the licensee's use of the Crowne Plaza marks, but also any objections, demands, controversies, allegations, or actions by third parties involving the marks or any part of the Brand System. This obligation extends to any potentially infringing or unauthorized uses of the marks or any part of the Brand System that the licensee becomes aware of.
IHG retains the sole and exclusive right to manage disputes with third parties regarding the use of the Crowne Plaza marks or Brand System. The licensee is required to fully cooperate with IHG in these matters, and any monetary recoveries resulting from these disputes will be for IHG's account. IHG is not obligated to initiate legal action against alleged infringers and may choose to settle disputes through licensing or other means.
Furthermore, the Crowne Plaza licensee is explicitly prohibited from initiating any legal action against alleged infringers or any other proceedings to enforce or protect the marks or Brand System. This underscores the franchisor's control over the brand's intellectual property and its enforcement. The licensee's role is limited to reporting potential infringements, while IHG manages the legal aspects of protecting its trademarks.