What happens if Delta Hotels By Marriott's right to use a trademark is challenged?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not have a federal registration for some of our principal trademarks. Therefore, those trademarks do not have as many legal benefits and rights as federally registered trademarks. If our right to use a trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses. Once we obtain a federal registration, however, our rights derived from federal registration of the trademark will be effective as of the filing date of the application.
You must identify your hotel using the name we designate, which we may change at our discretion. We may develop additional trademarks for use in the operation of Delta Hotels, or we may withdraw or substitute trademarks. You must modify or discontinue the use of a trademark or the hotel name at your expense if we modify or discontinue it.
Source: Item 13 — TRADEMARKS (FDD pages 104–106)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, if the right to use a trademark is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses. Delta Hotels By Marriott may develop additional trademarks, or they may withdraw or substitute trademarks. The franchisee must modify or discontinue the use of a trademark or the hotel name at their expense if Delta Hotels By Marriott modifies or discontinues it.
Delta Hotels By Marriott maintains control over the defense and settlement of any claim involving its trademarks. Franchisees are required to notify Delta Hotels By Marriott promptly in writing if they become aware of any infringement or challenge to the use of the trademarks. Franchisees must also cooperate fully in the defense or settlement of any claim or litigation against them involving the trademarks.
Delta Hotels By Marriott will indemnify a franchisee against third-party claims that the franchisee's use of their trademarks infringes upon the rights of another party, provided the franchisee is in compliance with the terms of the franchise agreement. The franchisee must give immediate written notice of any claim and cooperate fully with Delta Hotels By Marriott in defending or settling the claim. However, Delta Hotels By Marriott is not obligated to indemnify or defend a franchisee if they are in default under the franchise agreement or if the claim is based on a use of the trademark not authorized by the franchise agreement.
Delta Hotels By Marriott is not required to maintain any registration of any trademark that they determine cannot or should not be maintained. They may settle any dispute in any manner that they think appropriate, which may or may not include filing suit against imitators or infringers. Currently, Delta Air Lines, Inc. has filed proceedings with the United States Patent and Trademark Office to cancel Marriott's United States Registration Nos. 5955787, 5955788 and 5955797 and to oppose registration of Marriott's United States trademark application Serial Nos. 88853111 and 88853112, respectively. Delta Air Lines, Inc. has also filed similar actions with trademark registries in other jurisdictions. Delta Air Lines also has filed suit against Marriott and its franchisees in the UK High Court of Justice and in the Court of Milan, Commercial Chamber, in Italy.