What must an Extreme Art Studio franchisee do if they notice an infringement of the 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, if a franchisee notices any apparent infringement or challenge to the use of any mark, they must immediately notify Extreme Art Studio. The franchisee is not allowed to communicate with anyone other than Extreme Art Studio and its affiliates' attorneys regarding the infringement, challenge, or claim.
Extreme Art Studio and/or its licensing subisidiary (LSO) will then take the action they deem appropriate and will exclusively control any litigation, USPTO proceeding, or other administrative proceeding resulting from the infringement, challenge, or claim, or otherwise concerning any mark. The franchisee is required to sign documents and take actions deemed necessary or advisable by Extreme Art Studio's attorneys to protect and maintain their interests in the mark. Extreme Art Studio will reimburse the franchisee for reasonable costs incurred for any action they are asked to take.
Furthermore, if Extreme Art Studio deems it advisable to modify or discontinue using any mark, or to use additional or substitute trademarks, the franchisee must comply with Extreme Art Studio's directions within a reasonable time after receiving notice. However, Extreme Art Studio is not required to reimburse the franchisee for costs, loss of revenue, or other expenses related to promoting a modified or substitute trademark or service mark. The franchisee must not contest the validity of Extreme Art Studio's ownership of the mark, as the goodwill established by the use of the mark is exclusively for the benefit of Extreme Art Studio and its LSO.
Under the Franchise Agreement, Extreme Art Studio will indemnify the franchisee against, and reimburse them for, all damages for which they are held liable in any proceeding in which their use of any mark in compliance with the Franchise Agreement is held to constitute trademark infringement, and for all reasonable costs they incur in the defense of any claim brought against them or in any proceeding in which they are named as a party, only if they have timely notified Extreme Art Studio of the claim or proceeding and comply with their directions in responding to the proceeding. At their option, 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.