Intellectual property (IP) is the lifeblood of a successful business. A franchisor’s IP sets them apart from competitors, builds reputation and drives customer loyalty. That is why IP protection is a top priority for franchisors.
As a franchisee, it is crucial to ensure that you are using your franchisor’s IP correctly. Understanding the scope of permissible use is essential to avoid devastating legal and financial issues.
What is permissible use?
Permissible use refers to the authorized use of your franchisor’s IP, such as trademarks, copyrights, trade secrets and patents, in a way that is allowed by your franchise agreement. This can include using your franchisor’s logo, brand name and proprietary systems in marketing, advertising and daily operations.
Understanding the limits of permissible use
While you can use your franchisor’s IP to operate your business, there are limits to this use. For instance, you may not modify or alter their IP without permission, use the IP in a way that damages their reputation or brand, use the IP outside the scope of your franchise agreement or disclose confidential information or trade secrets to third parties.
Exceeding the scope of permissible use can have serious consequences. Your franchisor may terminate your franchise agreement, seek damages or take legal action to protect their IP rights. In extreme cases, you may even face criminal charges for IP infringement.
What you can do
To ensure compliance with IP use requirements and avoid legal disputes, you should carefully review your franchise agreement and understand the scope of permissible use. Take the time to thoroughly read and comprehend the agreement. Doing so can avoid misunderstandings and ensure you are using your franchisor’s IP correctly.
You should also seek permission from your franchisor before you modify or use their IP in new ways. This is an essential step to avoid infringing on your franchisor’s IP rights.
If you have questions about IP use or concerns about potential infringement, do not hesitate to seek legal guidance from an experienced franchise attorney. Zarco Einhorn Salkowski, P.A. is ready to answer your queries through a free consultation.
Remember, it is always better to err on the side of caution when it comes to using someone else’s IP. By understanding the scope of permissible use and taking steps to ensure compliance, you can protect yourself from legal and financial consequences and maintain a healthy franchise relationship.
