What must an Epcon Communities franchisee do if they suspect copyright infringement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
pliance with the Franchise Agreement, the Manuals, the other manuals disclosed in Item 11 of this disclosure document and with reasonable rules prescribed periodically by us. You must promptly notify us of any use of information that is the subject of the copyright registrations or any use resembling or suggesting the information that is the subject of the copyright registrations or the subject matter of any copyright registration application and any litigation instituted by any third party against us or you involving the copyright registrations ("Copyrights"). The Franchise Agreement does not require us to take affirmative action when notified of these uses or claims. We may, in our sole discretion, undertake the defense, prosecution or settlement of any litigation relating to the Copyrights. If we do so, you are required under the Franchise Agreement to sign documents and to render other assistance as is in our opinion reasonably necessary to carry out the defense, prosecution or settlement. The Franchise Agreement does not require us to participate in your defense and/or to indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving Copyrights, or if a proceeding involving a copyright registration is resolved unfavorably to you.
If we discontinue or modify use of the information that is the subject of any of the copyright registrations, we may require you to discontinue or modify your use of that information at your cost and
expense. However, unless prohibited by law or if you are in default under your Franchise Agreement, we typically allow franchisees to use the discontinued or modified copyrighted information to complete their existing project, provided the franchisee has commenced construction of its project and construction is completed within the time period permitted under the Franchise Agreement and the Market Area Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–54)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, if a franchisee suspects copyright infringement, they must promptly notify Epcon Communities of any use of information that is the subject of copyright registrations, or any similar use, and any related litigation instituted by a third party against Epcon Communities or the franchisee. This notification requirement ensures that Epcon Communities is aware of potential infringements and can take appropriate action to protect its copyrights. The Franchise Agreement does not mandate that Epcon Communities take any action upon notification of these uses or claims.
Epcon Communities retains the sole discretion to undertake the defense, prosecution, or settlement of any litigation relating to the copyrights. If Epcon Communities chooses to take such action, the franchisee is required to sign documents and provide assistance that Epcon Communities deems reasonably necessary for the defense, prosecution, or settlement. However, the Franchise Agreement does not obligate Epcon Communities to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding concerning copyrights, or if a proceeding involving a copyright registration is resolved unfavorably to the franchisee.
If Epcon Communities discontinues or modifies the use of copyrighted information, it may require the franchisee to discontinue or modify their use of that information at the franchisee's cost and expense. However, Epcon Communities typically allows franchisees to continue using the discontinued or modified copyrighted information to complete existing projects, provided that construction has commenced and is completed within the time period permitted under the Franchise Agreement and the Market Area Agreement, unless prohibited by law or if the franchisee is in default under the Franchise Agreement. Epcon Communities states that it is not aware of any infringements that could materially affect a franchisee's use of the copyrighted information.