Under what circumstances will Del Taco NOT be liable for software infringement claims related to the Del Taco software?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Altered Version. Del Taco shall have no liability for any claim of infringement based on: (i) the use of a superseded or altered version of the Software if infringement would have been avoided by the use of a current or unaltered version of the Software, which Del Taco made available to Licensee; or (ii) the combination, operation or use of the Software with software, hardware or other materials not furnished or approved for use with the Software by Del Taco.
Injunction. If a final injunction is obtained against the use of any part of the Software by reason of infringement of a U.S. copyright or patent, Del Taco shall have the right, at its option, either to: (i) procure for Licensee the right to continue to use the Software; (ii) modify the Software so that it becomes non-infringing; or (iii) terminate this Agreement without penalty.
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, Del Taco will not be liable for infringement claims under specific conditions related to the software provided to franchisees. Del Taco is not liable if the franchisee uses a superseded or altered version of the software, provided that Del Taco made available a current or unaltered version that would have avoided the infringement. This means franchisees must promptly implement updates provided by Del Taco to remain protected.
Additionally, Del Taco bears no liability if the infringement claim arises from the franchisee's combination, operation, or use of the software with other software, hardware, or materials that Del Taco did not furnish or approve. This highlights the importance of only using approved and compatible systems with the Del Taco software. Franchisees should seek explicit approval from Del Taco before integrating any third-party tools or modifications.
These stipulations protect Del Taco from liability when franchisees deviate from the intended and approved use of the software. However, franchisees also have a responsibility to use the software as intended and keep it updated. If a final injunction is obtained against the use of any part of the Software by reason of infringement of a U.S. copyright or patent, Del Taco has the right to either procure for Licensee the right to continue to use the Software; modify the Software so that it becomes non-infringing; or terminate the Agreement without penalty.