What is the nature of the license granted to Epcon Communities franchisees regarding copyright registrations?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
of any superior prior rights or infringing uses that could materially affect your use of the Marks in any state.
ITEM 14. PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
You will be granted a limited, non-exclusive license to use the information that is the subject of certain copyright registrations, as designated by us for use in the development and construction of your project(s) in accordance with the terms of your Franchise Agreement. The copyright registrations are owned by IP86 and are licensed to us. A list of these copyright registrations is attached to this disclosure document as Exhibit Q. A disclosure regarding the terms of the sublicense agreement between us and IP86, LLC appears in Item 13.
All of the copyright registrations have a duration of 70 years after the death of the last surviving author. All of the copyright registrations listed on Exhibit Q relate to architectural designs, drawings and blueprints that we will license to you to use in development and construction of your project(s). No other copyrights are material to the Epcon Communities franchise.
We do not currently have any patents or any pending patent applications that are material to the Epcon Communities franchise.
There are no currently effective determinations of the PTO, the U.S. Copyright Office or any court regarding these copyrights. In addition, there are no agreements currently in effect which significantly limit our rights to license to you the rights to use these copyrights in the development and construction of your project(s).
You must use the information that is the subject of each copyright registration in full compliance 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, franchisees are granted a limited, non-exclusive license to use information subject to certain copyright registrations. These registrations are designated by Epcon Communities for use in the development and construction of projects, in accordance with the terms outlined in the Franchise Agreement. The copyright registrations are owned by IP86 and licensed to Epcon Communities, with a list of these registrations provided in Exhibit Q of the FDD. The terms of the sublicense agreement between Epcon Communities and IP86, LLC are detailed in Item 13.
The copyright registrations, which pertain to architectural designs, drawings, and blueprints, have a duration of 70 years after the death of the last surviving author. Epcon Communities will license these copyrights to franchisees for use in the development and construction of their projects. No other copyrights are considered material to the Epcon Communities franchise.
Franchisees must use the copyrighted information in full compliance with the Franchise Agreement, the Manuals, and any reasonable rules prescribed by Epcon Communities. They are required to promptly notify Epcon Communities of any use of information that is the subject of the copyright registrations, or any similar use, as well as any litigation involving the copyrights. Epcon Communities has the discretion to undertake the defense, prosecution, or settlement of any litigation relating to the Copyrights, and franchisees are required to assist in such efforts. However, Epcon Communities is not required to participate in the franchisee's defense or indemnify them for expenses or damages in any proceeding involving Copyrights that is resolved unfavorably to the franchisee.
If Epcon Communities discontinues or modifies the use of any copyrighted information, they may require franchisees to do the same at the franchisee's cost and expense. However, franchisees are typically allowed to use discontinued or modified copyrighted information to complete existing projects, provided construction has commenced and is completed within the permitted time frame, unless prohibited by law or if the franchisee is in default under the Franchise Agreement. Copyrights created on or after January 1, 1978, are not subject to renewal registration.