Who controls litigation regarding infringement of the Extreme Art Studio mark?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any person's claim of any rights in any Mark, and you may not communicate with any person other than us and our and our affiliates' attorneys regarding any infringement, challenge or claim. We and/or LSO may take the action we deem appropriate and control exclusively any litigation, USPTO proceeding, or other administrative proceeding from the infringement, challenge, or claim, or otherwise concerning any Mark. You must sign the documents and take the actions that, in the opinion of our attorneys, are necessary or advisable to protect and maintain our interests in the Mark. We will reimburse you for your reasonable costs of taking any action that we have asked you to take.
If it becomes advisable at any time for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trade or service marks, you must comply with our directions within a reasonable time after receiving notice. We do not have to reimburse you for your costs, loss of revenue, or other expenses of promoting a modified and/or substitute trademark or service mark.
You must not contest, or assist any other person in contesting, the validity of our and LSO's ownership of the Mark. Your use of the Mark and any goodwill established by that use are exclusively for our and LSO's benefit.
Under the Franchise Agreement, we will indemnify you against, and reimburse you for, all damages for which you are held liable in any proceeding in which your use of any Mark in compliance with the Franchise Agreement is held to constitute trademark infringement, and for all reasonable costs you incur in the defense of any claim brought against you or in any proceeding in which you are named as a party, only if you have timely notified us of the claim or proceeding and comply with our directions in responding to the proceeding. At our option, we and/or LSO may defend and control the defense of any proceeding arising from your use of any Mark under the Franchise Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 39–40)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio and/or LSO (presumably a legal entity affiliated with the franchisor) retain exclusive control over any litigation, USPTO proceedings, or other administrative proceedings related to infringement, challenges, or claims concerning any Mark. This means that if a third party infringes on the Extreme Art Studio trademark, the franchisor, not the franchisee, decides how to respond legally. The franchisee is required to notify Extreme Art Studio immediately of any apparent infringement or challenges to the use of any Mark.
As a franchisee, you are prohibited from communicating with anyone other than Extreme Art Studio and its affiliates' attorneys regarding any infringement, challenge, or claim. You must also sign documents and take actions deemed necessary by Extreme Art Studio's attorneys to protect their interests in the Mark. Extreme Art Studio will reimburse the franchisee for reasonable costs incurred for actions the franchisor requests the franchisee to take.
Extreme Art Studio also has the right to modify or discontinue the use of any Mark, and franchisees must comply with these directions within a reasonable time after receiving notice. However, Extreme Art Studio is not obligated to reimburse franchisees for costs, loss of revenue, or other expenses related to promoting a modified or substitute trademark or service mark. Franchisees are prohibited from contesting the validity of Extreme Art Studio's ownership of the Mark, and any goodwill established through the use of the Mark accrues exclusively to Extreme Art Studio.
Under the Franchise Agreement, Extreme Art Studio will indemnify franchisees against damages for which they are held liable in any proceeding where their use of any Mark, in compliance with the Franchise Agreement, is held to constitute trademark infringement. This also covers reasonable costs incurred in defending against any claim, provided the franchisee has timely notified Extreme Art Studio of the claim or proceeding and complies with their directions. Extreme Art Studio and/or LSO may defend and control the defense of any proceeding arising from the franchisee's use of any Mark under the Franchise Agreement.