If Dryject elects to protect its patents, who controls the litigation?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) We and/or Our affiliates own rights in, or to certain patents that are material to the Franchise and Our System. You shall not, at any time during the Term of this Agreement or after its termination or expiration contest the validity or ownership rights in any patents currently issued to or hereafter applied for by Us and/or Our affiliates. If litigation involving the Patents is instituted or threatened against You, You must notify Us promptly and cooperate fully with Us in defending or settling the litigation. Should We elect to protect the Patents or protect You against claims of infringement, We will have the right to control any litigation involving a patent licensed by Us to You.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains the right to control any litigation involving a patent licensed by them to the franchisee, should they elect to protect their patents or protect the franchisee against claims of infringement. This means that if a legal dispute arises concerning a patent related to the Dryject system, Dryject, not the franchisee, will make the strategic decisions regarding the lawsuit.
This control extends to all aspects of the litigation, including selecting legal counsel, determining legal strategy, negotiating settlements, and deciding whether to pursue a trial. While the franchisee is required to promptly notify Dryject of any threatened or instituted litigation and cooperate fully, the ultimate authority rests with Dryject.
For a prospective Dryject franchisee, this clause offers both potential benefits and risks. On one hand, it provides assurance that Dryject will defend its patents, which are critical to the Dryject system. On the other hand, it means the franchisee relinquishes control over the litigation process, even if the lawsuit directly impacts their business. It is important for a franchisee to understand that their input will be considered, but Dryject's decisions will prevail.