Who pays the costs and expenses of litigation specifically related to Pearce Bespoke's marks?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke is not required to protect you against infringement or unfair competition claims arising out of your use of the Marks, or to participate in your defense or indemnify you. Pearce Bespoke reserves the right to control any trademark litigation and will take the action Pearce Bespoke believes appropriate if a third party infringes Pearce Bespoke's Marks. You must notify Pearce Bespoke promptly if you become aware of any infringement or unauthorized use of the Marks and cooperate with any action that Pearce Bespoke takes. Pearce Bespoke will pay the cost and expense of all litigation Pearce Bespoke incurs, including attorneys' fees, specifically related to the Marks. However, Pearce Bespoke is not required to take affirmative action when notified of these uses or claims. If any party claims that its rights to use any of the Marks are superior and Pearce Bespoke confirms that claim, you must, at your expense, immediately make the changes and use the substitutions to the Marks as Pearce Bespoke requires.
Source: Item 13 — TRADEMARKS (FDD page 29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke bears the costs and expenses of litigation specifically related to its marks. This includes attorney's fees. However, Pearce Bespoke is not obligated to initiate legal action upon notification of infringement or unauthorized use of its marks.
This means that if Pearce Bespoke decides to pursue litigation to protect its trademarks, the company will cover the associated costs. As a franchisee, you are required to promptly inform Pearce Bespoke of any potential infringement or unauthorized use of the marks and cooperate with any legal action they decide to take. However, Pearce Bespoke has the discretion to decide whether or not to pursue legal action.
It's important to note that if a third party claims superior rights to the marks, and Pearce Bespoke confirms the validity of that claim, franchisees are responsible for making any necessary changes or substitutions to the marks at their own expense. This highlights the importance of Pearce Bespoke's role in managing and protecting its trademarks, but also clarifies the franchisee's responsibility to comply with any required changes if trademark issues arise.