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Damages from Defaulting Franchisees: More Options Than You Think
When the relationship between a franchisor and a franchisee breaks down, one might think the standard measure of damages is just the lost franchise fees. However, just as a simple failure to perform is not the only type of wrong suffered by franchisors, unpaid fees are not the only types of damages available. This article examines a number of cases in which the franchisor's claims ' and claimed damages ' were outside the ordinary.
A franchisor invests blood, sweat, and tears ' and usually a lot of money ' in creating, developing, and marketing its business. Portions of that business are expressed in one or more forms of protectable intellectual property, such as patented products, machinery or processes, trademarks or trade names, copyrights, or trade dress. Most times, when a dispute arises between a franchisor and a franchisee, the franchisor has claims under the statutes or case law protecting such intellectual property.
For example, when a franchisee wrongfully uses the franchisor's trademarks, often after the end of the franchise relationship, it can be liable for damages measured in several different ways. In Hair Associates v. National Hair Replacement Services, Inc. et al., 987 F.Supp. 569, (W. D. Mich. 1997), the franchisor asserted such a claim against a terminated franchisee. The court cited the relevant provisions of the Lanham Act, 15 U.S.C. ' 1125(a), that entitle the registrant of a mark to recover: 1) defendant's profits; 2) damages sustained by the plaintiff; and 3) the costs of the action. The court also has discretion to enter judgment for any sum above the amount found as actual damages, not exceeding three times that amount. The court wrestled with alternative methods of computing the defendant's profits, but ultimately settled on a sum.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?