Is Desi District obligated to protect its copyrights?

According to Desi District's 2024 Franchise Disclosure Document, Desi District, LLC, an affiliate, owns the trademarks. Desi District, LLC granted Desi District the exclusive right to sublicense the trademarks to franchisees throughout the United States through an Intercompany License Agreement. This agreement has a perpetual duration and can only be modified by mutual consent or canceled if Desi District misuses the trademarks and fails to correct the misuse, or if Desi District discontinues commercial use of the trademarks for over a year. If the Intercompany License Agreement is terminated, the franchisee's rights remain unaffected.

Desi District protects the franchisee's right to use the principal trademarks and protects against claims of infringement or unfair competition arising from the use of these trademarks. Franchisees must notify Desi District of any use or claims of rights to trademarks identical or confusingly similar to those licensed to them. However, the franchise agreement does not require Desi District to take affirmative action upon notification of such uses or claims. Desi District retains the right to control any administrative proceedings or litigation involving a trademark licensed to the franchisee.

In practical terms, this means that while Desi District takes steps to safeguard the trademarks franchisees use, the obligation to actively pursue and resolve potential infringements isn't explicitly mandated in the franchise agreement. Franchisees are responsible for reporting any potential trademark issues, but Desi District has the discretion to decide how to respond. This arrangement is fairly typical in franchising, where the franchisor owns the brand and sets the policy for protecting it, but the franchisee on the ground is often the first to spot potential infringement issues.