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Re: Licensing Trademark ..or are they Franchises?


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Posted by M Arthur Auslander on August 12, 2002 at 23:53:42:

In Reply to: Licensing Trademark ..or are they Franchises? posted by Serious on August 12, 2002 at 12:35:09:

: Hi,

: I have encountered a situation where a person is allegedly licensing a trademark. Some of the companies associated have the trademark contained in the company name.

: 1) How is a consumer to know "who" is responsible to them?
: 2) How does one determine if this is more of a side-step to the franchise laws than a true trademark license?
: 3) If the licensor "discovers" the bad BBB report of one of the licensees (let's pretend he happens to own 100% of the licensee); then the trademark license is terminated and the location closes.. would that be an example of naked license that would be in the forum state and cause the loss of the trademark?
: 4) How can pointing to the actions or a BBB report of a licensee who is known by the trademark name be complained of as "slandering" another company going by the same trademark name when there is never any indication of a separation of companies?


: Thanks for any direction you can point me in...

: AnotherMe

Dear Serious,
Any intelligent licencor would make certain to protect the use. Trademarks cannot be registered without documented use. It is my understanding of the law that the licencor must maintain the integrity of the mark.

M. Arthur Auslander

Auslander & Thomas-Intellectual Property Law Since 1909
505 Eighth Avenue, New York, NY 10018
212-594-6900, fax 212-244-0028, aus@auslander.com
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