Regarding the FreedomPay Technology used by Crowne Plaza, who owns the Intellectual Property Rights?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel acknowledges that all right, title and interest in and to all patents, copyrights, trade secret, trademark and other intellectual property rights in the goods and services (other than thirdparty Goods and Third-Party services), together with all modifications, improvements, enhancements, updates, localizations and translations thereof (collectively, "FreedomPay Technology"), are, and at all times will remain, the sole and exclusive property of FreedomPay, the provider of the Secure Switching service.
Nothing contained in this Participation Agreement may directly or indirectly be construed to assign or grant to Hotel or any third party any license, right, title or interest in or to the FreedomPay Technology except as necessary to use the goods or services or as otherwise expressly provided in this Participation Agreement.
The license granted to Hotel to the software embedded in the Products and Secure Switching and granted to Hotel in its agreement with IHG is limited to facilitating the sale of Hotel's products and services and does not include any other rights of any type.
FreedomPay owns all Remaining Rights. "Remaining Rights" means, except for the limited license granted to Hotel, all other rights in the software, including but not limited to, improvements, modifications, alterations, additions and deletions to any trademark, logo, copyright or other notices, legends, symbols, labels, displays, sounds, other media or characteristics on or in the FreedomPay Technology on the Products.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, FreedomPay retains ownership of the Intellectual Property Rights for the FreedomPay Technology. The FDD specifies that all rights, titles, and interests related to patents, copyrights, trade secrets, trademarks, and other intellectual property rights associated with FreedomPay Technology remain the sole and exclusive property of FreedomPay. This includes any modifications, improvements, enhancements, updates, localizations, and translations made to the technology.
Crowne Plaza hotels are granted a limited license to use the FreedomPay Technology solely for facilitating the sale of their products and services. This license does not extend to any other rights, meaning the hotel cannot sublicense, modify, or otherwise exploit the technology beyond its intended use. FreedomPay retains all 'Remaining Rights,' which encompass all rights in the software, including improvements, modifications, alterations, additions, and deletions to any trademark, logo, copyright, or other notices within the FreedomPay Technology.
This arrangement means that while Crowne Plaza franchisees can utilize the FreedomPay system for processing transactions, they do not acquire any ownership or control over the underlying technology. They are essentially licensees bound by the terms and conditions set forth in their agreement with IHG and FreedomPay. Any unauthorized use, reverse engineering, or attempts to circumvent these restrictions could result in legal repercussions.
For a prospective Crowne Plaza franchisee, this highlights the importance of understanding the scope and limitations of the technology licenses granted. It also underscores the need to adhere strictly to the terms of use to avoid any potential disputes over intellectual property rights. Franchisees should direct any questions about permissible uses of the FreedomPay Technology to IHG to ensure compliance.