Is Epcon Communities required to take action if notified of copyright infringement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 must promptly inform Epcon Communities of any potential copyright infringements or litigation involving copyrights. However, the Franchise Agreement does not obligate Epcon Communities to take any specific action upon receiving such a notification.
Instead, Epcon Communities retains the sole discretion to decide whether to defend, prosecute, or settle any copyright-related litigation. If Epcon Communities chooses to take action, the franchisee is required to sign documents and provide assistance deemed reasonably necessary by Epcon Communities for the defense, prosecution, or settlement.
The agreement does not require Epcon Communities to participate in the franchisee's defense or to indemnify the franchisee for expenses or damages if the franchisee is involved in a copyright-related administrative or judicial proceeding, or if a proceeding involving a copyright registration is resolved unfavorably to the franchisee. This means that franchisees could potentially bear the full financial burden of defending themselves in copyright disputes.
This arrangement places the onus on the franchisee to be vigilant about potential copyright issues, while Epcon Communities maintains control over the response to any claims. Prospective franchisees should carefully consider this allocation of responsibility and the potential financial implications of copyright litigation.