If Kidokinetics learns of an infringing user of its Marks, is it required to take action?

According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics is not required to pursue infringing users of its marks. While Kidokinetics retains the right to take action if it learns of an infringing user, it is not obligated to do so if it deems action unwarranted. However, if a third party brings a claim against a franchisee for intellectual property rights infringement due to the franchisee's use of Kidokinetics's marks in accordance with the Franchise Agreement, Kidokinetics will defend the franchisee. Kidokinetics may require the franchisee's assistance, but Kidokinetics will exclusively control any related proceeding or litigation.

It is the franchisee's responsibility to notify Kidokinetics within three business days if they become aware of any party using the marks or a confusingly similar trademark. Kidokinetics has the sole discretion to take action it deems appropriate to control any litigation or administrative proceeding involving a trademark licensed by them to the franchisee.

This policy means that a Kidokinetics franchisee relies on Kidokinetics to protect its trademarks but cannot compel Kidokinetics to act against infringers. The franchisee is responsible for promptly reporting any potential infringement, allowing Kidokinetics to assess the situation and decide on the appropriate course of action. This arrangement is typical in franchising, where the franchisor owns and controls the brand's intellectual property.