What must an Epcon Communities franchisee do if a third party institutes litigation involving the Copyrights?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 53–54)
What This Means (2025 FDD)
According to Epcon Communities' 2025 Franchise Disclosure Document, if a third party institutes litigation against Epcon Communities or the franchisee involving the copyright registrations, the franchisee must promptly notify Epcon Communities. These copyright registrations pertain to the architectural designs, drawings, and blueprints that Epcon Communities licenses to the franchisee for use in the development and construction of their projects. The Franchise Agreement does not obligate Epcon Communities to take any action upon notification of such claims.
Epcon Communities retains the discretion to undertake the defense, prosecution, or settlement of any litigation relating to the Copyrights. Should Epcon Communities choose to do so, the franchisee is required to sign documents and provide other assistance that Epcon Communities deems reasonably necessary for the defense, prosecution, or settlement. However, the Franchise Agreement does not require Epcon Communities to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is a party to an administrative or judicial proceeding involving Copyrights, or if a proceeding involving a copyright registration is resolved unfavorably to the franchisee.
If Epcon Communities discontinues or modifies the use of information subject to any copyright registrations, they may require the franchisee to discontinue or modify their use of that information, with the franchisee bearing the cost and expense. However, unless prohibited by law or if the franchisee is in default under the Franchise Agreement, Epcon Communities typically allows franchisees to use the discontinued or modified copyrighted information to complete their existing project, provided construction has commenced and is completed within the permitted time frame under the Franchise Agreement and the Market Area Agreement. This allowance provides some flexibility for franchisees who have already started projects based on the copyrighted material.