Who controls any copyright litigation involving Desi District?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
12.3 Infringement.
- (a) Defense of Franchisee. If Franchisee has used the Marks in accordance with this Agreement, then (i) Desi District Franchise Group shall defend Franchisee (at Desi District Franchise Group's expense) against any Action by a third-party alleging infringement by Franchisee's use of a Mark, and (ii) Desi District Franchise Group will indemnify Franchisee for expenses and damages if the Action is resolved unfavorably to Franchisee.
- (b) Infringement by Third Party. Franchisee shall promptly notify Desi District Franchise Group if Franchisee becomes aware of any possible infringement of a Mark by a third party. Desi District Franchise Group may, in its sole discretion, commence or join any claim against the infringing party.
- (c) Control. Desi District Franchise Group shall have the exclusive right to control any prosecution or defense of any Action related to possible infringement of or by the Marks.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 42–43)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Desi District Franchise Group maintains control over any litigation related to the brand's trademarks. Specifically, the franchise agreement states that Desi District Franchise Group has the exclusive right to manage the prosecution or defense of any action concerning potential infringement of the Marks, whether the infringement is by or against a third party.
This means that if a franchisee is involved in a legal dispute regarding trademark infringement, Desi District Franchise Group will take the lead in handling the legal proceedings. The franchisee is obligated to promptly inform Desi District Franchise Group of any potential trademark infringement they become aware of.
This arrangement is typical in franchising, as it allows the franchisor to protect the brand's intellectual property consistently across all franchise locations. It also ensures that legal strategies align with the overall interests of the Desi District system. Franchisees benefit from this arrangement because they are defended and indemnified by Desi District Franchise Group in case of an infringement action, provided they have used the Marks in accordance with the franchise agreement.