Licensing of Intellectual Property (Franchisors) Summary

Licensing of Intellectual Property (Franchisors)
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Licensing of Intellectual Property (Franchisors)
Introduction
In the contemporary business world, there is a lot of competition brought about by other businesses dealing in the same line of products and goods. Companies run in line with existing laws that are set in place in the respective countries of operation. In this light, businesses have to devise ways to increase their chances of survival and growth in the cut-throat competitive industries. As enterprises create ways of survival, they must consider the environment they operate; for example, businesses must comprehensively analyze the legal scope and subsequently make the best decision for business growth and survival. In this regard, if the company wants to form a franchise, the franchisors have to consult a legal expert who guides them on their intellectual property rights and subsequently makes them understand the terms of their operations (Leone et al., 2020). Therefore, it is essential to note that from different business models, including the franchisors, the legal requirements that businesses must adhere to the legal requirements that involve their specific line of operations.
With technological advances, intellectual property rights as a discipline of law have grown over time. The growth in intellectual property has been realized because businesses have to build brands and specifically on the benefits of owning such brands. For example, some brands are internationally recognized while other brands have no international recognition. Businesses with well-known brands have the upper hand in penetrating new markets and subsequently attract new and potential customers because the existing customers have good faith in these known brands (Leone et al., 2020). A brand's success is solely dependent on how these businesses maneuver the cut-throat competitive business environments. What are some of the ways a company may take to be better placed in the market to enhance growth and survival? Businesses may decide to sell or grant permission to other companies to use their trademarks and business models (Parr,2018). The license granted to the other firm to sell goods and services is the business's basic franchise model. In this light, the company that sells or gives the subsequent business permission to use its trademarks and business model is the franchisor. In contrast, the business or corporation that owns and subsequently operates the company using the franchisor's trademarks or business model is the franchisee.
To comprehensively analyze intellectual property law's licensing while considering the franchisor, a franchisor's franchising union's roles are comprehended. In this regard, the primary role that the franchisor performs is to grant the franchisee the permission and rights to operate the business under the franchise model, trademark, and service mark while enforcing the brand's standard of the systems. Additionally, through their legal expert, the franchisors should provide training to the franchisee and their management as they highlight the critical scopes and aspects of the intellectual property that the franchisor offers as licensing (Leone et al.,2020). Franchisors are expected to provide the same training and subsequently enlighten all the franchisee staff. Through training and support, it is highly possible that the business will operate smoothly and that the breaching of intellectual property rights will not likely occur.
On discussing intellectual property, it is essential to note that it has a cool factor limited to the technological aspects of business and different business law models. Therefore, intellectual property has a cool factor in franchising as well. In light, it comes as a unique form of licensing given out by the franchisor to the franchisee, allowing them to use their trademarks and business models. In this regard, it is correct to say that franchising's intellectual property is directly linked to the brands, business models, and systems (Cantatore et al., 2018). Additionally, intellectual property in franchising is also directly related to other intangible property that is witnessed in everyday legal representation in business. This paper will examine the comprehensive analysis of franchisors' intellectual property law in Saudi Arabia and the United States of America. Additionally, the report will also analyze how to protect the franchisor's intellectual property rights.
Primary categories of franchisor's intellectual property rights and how to defend them
Overview
Even though intellectual property rights are at the franchising center, many franchising and intellectual property lawyers are afraid of work that revolves around franchising. This shying away from some of the intellectual property work that involves franchising stems from the fact that most of these lawyers work for larger firms. These firms have intellectual property departments, while some of the lawyers are afraid of the intellectual property work because they fear that lack of statutory and some legal frameworks may inhibit their ability to advise their clients effectively. In a nutshell, different firms take different models that relate to intellectual property work in franchising; for example, related scholarly work may be on a short-term basis on another firm, while in the other firms, the intellectual property work may be forged to the cutter for the long term commitments. Therefore, the scenario makes it hard for intellectual property lawyers to advise their clients accordingly, making it difficult for them to take on some intellectual property work (Lahsen et al., 2019). Therefore, it is significant to understand the franchisor's intellectual property rights basics and how to navigate the complexities in statutes and laws surrounding the primary intellectual property works and the subsequent legal scope that these laws surround.
1 Trademarks
Considering the terms and conditions that apply to franchising intellectual property rights in different regions and countries, it isn't easy to streamline the importance of trademark in franchising. For example, in the United States of America, a franchise's definition under the amended rule on franchising is precise. The specificity of the terms and conditions provided under the franchising amended control in the United States of America gives licensing a top-notch trademark as a primary category in intellectual property rights. Just as trademark rules apply in Saudi Arabia and the United States of America, following a specific procedure, in this light, arriving at the contract or any other business arrangement must follow the order under the laws governing the franchise agreement in Saudi Arabia and the federal law in the United States of America (Lahsen et al., 2019). Since the franchise exhibits some complexities, different states have different rules and different elements of arguments. Therefore, it is essential to understand how other states interpret the franchisor's terms and conditions and, subsequently, whether the franchise elements provide the marketing support and supervision as agreed by the parties in the franchisor's intellectual property agreements.
Consequently, the franchisor has to protect their trademarks and portfolio as this is sometimes the basis of the benefits that the intellectual property rights would breed. The trademark portfolio is sometimes franchised specific. The specificity is exhibited regardless of where the franchisor may be in their life-cycle. Therefore, it is essential to note that the trademark laws protect some primary aspects of the franchisor's intellectual property. Additionally, the trademark laws should be examined with their subsequent effects on the trademark's owner (franchisor) and potential drawbacks on the franchisor's protection.
In Saudi Arabia, for a business to enjoy the intellectual property rights that result from trademarks, the company must register for the brand. As there are significant technological advances in different business law spheres, Saudi Arabia has adopted online registration procedures for businesses who want to register for the trademark to license their franchisor's intellectual property. The efficiency provided in the registration process of brands in Saudi Arabia allows the relevant authorities concerned with the registration process to examine the application within 14 days of application Lahsen et al., 2019). After reviewing the registration form that is submitted online, the trademark application may either fulfill the registration requirements or fall short of the same. In the former's case, the trademark certificate is given within three months, and the business shall have legal intellectual property stemming from the trademark. In the latter case, the certificate will not be issued, and there will be a need for the business to have an office action. Therefore, the review of the trademark's online application can either be cleared for certification or turned down for further office actions as in Saudi Arabia.
In most cases, the registration process for trademark application requires a registration fee tis paid either via the trademark registration offices or an online registration process, as in Saudi Arabia. Although different countries may have slightly other registering trademarks, there are internationally recognized systems, for example, the Madrid system of registering trademarks. There is a single procedure used to write a trademark from different territories and states in the Madrid systems of trademark registration. Therefore, brands can be registered internationally from a single application using one language and subsequently one currency in paying for the registration fee. After successful registration, there is a global brand database that provides access to all the database records from different international and national sources, which can then be used in the legal tussle if there is an infringement of intellectual property rights. Global brand databases provide a distinction on various trademarks, appellations of origin, and subsequent official emblems.
Additionally, a streamlining system searches trademark searches in databases in Saudi Arabia, the United States of America, and different international territories with a comprehensive application of intellectual property rights. In streamlining database searches, the global systems of trademark searches implemented to protect intellectual property violations use nice classification. Nice classification affects not only trademark searches in Saudi Arabia but also in different parts of the world. Social classification systems distinguish goods and services for the registration of trademarks.
Depending on the geographical locations, a system of trademark registration and branding is made. For example, there exists the Lisbon system for geographically unique products. In this light, products such as Habanos cigars and champagne have unique geographical characteristics that can play a crucial role in branding. In this regard, the Lisbon system is internationally recognized, and it protects and encourages the registration of designations of origin. The appellation of origin covers products through single registration of trademarks.
Trademark protection in intellectual property
Ideally, most of the consumers and potential customers with knowledge of trademark protection assume that trademarks are associated with words, phrases, and logo designs used in identifying and of the sources of products. Additionally, brands have also been linked to the chains of restaurant locations and other service lines. Therefore, it is essential to note that trademarks protect the distinction of a business's goods and services from other competitors and companies dealing in the same line of services. In the United States of America and Saudi Arabia, trademark protection at national and regional security is primarily done by registration.
In a broad-spectrum view of trademark, it can be described as the Universe of things. The description that breeds the Universe of items includes a combination of words, symbols, and names of products and services. The supreme court of the United States of America interpreted the trademark protection in intellectual property as human beings can have and use symbols or devices in anything they can. Additionally, the Supreme Court of the United States of America elaborated that the use of logos and devices has been and is used by humans as they carry meanings that can be interpreted literally. The language of interpretation is not restrictive. In this light, the government and jurisdiction of Saudi Arabia share in the same plight as that of the United States of America.
The intellectual property that the trademark protects is universally recognized, in some instances, as the business and the corporate world are constantly evolving. The evolution in business models includes globalization that has led to brands penetrating new markets and seeking a new customer base. In this light, businesses apply the different business models in the new markets; for example, the practical application of franchise that companies apply to stay in the competitive business environment-competition in the corporate world is inevitable. As businesses apply these models, it is crucial for franchisors' to effectively use the trademark as a protection for their intellectual property.
The case of Saudi Arabia and the United States of America in their courts' sessions that involves intellectual property have specifically classified several things to be falling under the trademark category in the intellectual property that consists of the franchisor. For example, the federal courts on the Trademark Trial and appeal board specifically stated that everything ranging from a particular shape of a bottle, sounds, the scent of a sewing thread, and giggles qualifies as a trademark (Ferrucci et al., 2020). For example, there exists a wordmark in the trademark type and the franchise-specific models—for example, McDonald's word mark and their specific image that is franchise specific. Additionally, there are tagline marks such as 'i'm LOVIN' IT' in McDonald's tagline. Besides, trademarks also protect the franchisor by registering sound marks in franchise-specific; for example, E F G H notes played in succession can be registered as a trademark.
Various trademarks and their subsequent defense in intellectual property, such as sound mark, wordmark, logo mark, and both. In this light, it is essential to note that trademarks, as a primary category of franchisors' intellectual property, are tied to a product. On the other hand, service marks identify and distinguish and protect the intellectual property rights of the services provided by a given business or franchise. In this regard, both the trademarks tied to products and the service marks connected to services are part and parcel of the franchisor's intellectual property portfolio. Additionally, the franchisor's intellectual property portfolio may be entitled to copyrights and other kinds of intellectual properties. The entitlement to copyrights and other forms of intellectual property is solely dependent on the type of the trademark, for example, the combination mark in McDonald franchise specific.
Requirements for trademark protection
Saudi Arabia
Although franchisors can sometimes register internationally from a single application using one language and subsequently one currency in paying for the registration fee, the Saudi Arabia trademark protection eligibility by the relevant authorities provides a good outline followed in the registration process. Franchisor trademark protection in Saudi Arabia outline that a trademark application has to be filled before a patent office by a local agent. In some instances, Saudi Arabia provides the online systems from which the registration can is made, and the application is reviewed within 14 days (Parr, 2018). Apart from filling the application form before the patent office, the Saudi Arabian consulate must authenticate the application immediately after receiving the attorney's good notarised power. With globalization and terms in economic and diplomatic affairs, foreign applicants for trademarks in Saudi Arabia are exempted from domestic registration. Saudi Arabia does not allow multiclass applications, but separate applications require the service mark and the trademarks in goods.
Saudi Arabia also provides new markets for companies that are undergoing globalization. The intellectual property that the trademark protects is universally recognized, in some instances, as the business and the corporate world are constantly evolving. The evolution in business models includes globalization that has led to brands penetrating new markets and seeking a new customer base. In this light, businesses apply the different business models in the new markets. For example, a practical franchise application that companies use to stay in the competitive business environment-competition in the corporate world is inevitable (Ferrucci et al., 2020). As businesses apply these models, it is essential for franchisors' to effectively use the trademark as a protection for their intellectual property. The application of the franchisors trademark registration by the Saudi Arabia, patent officials enable the registered companies.
The United States of America
In the United States of America, the trademark laws that dictate the eligibility for trademark protection revolve around the recent developments and adoption of the Federal Trademark Dilution Act of 1995 (Ferrucci et al., 2020). Additionally, the Trademark Dilution Revision Act of 2006 also dictates trademark eligibility in the United States of America. In this light, it is essential to note that in the United States of America and so is Saudi Arabia, and the trademark laws go hand in hand with franchising in a realistic view. These laws and franchising are symbiotic because trademark laws are designed to protect the concerns that are associated with the clients' mark. Additionally, the trademarks also make it possible for the consumers to identify their buying products' sources. In the United States of America, some minimums are required for a brand to be eligible for protection.
The minimums required in the United States of America for a trademark to be eligible for protection include a mark's DistinctivenessDistinctiveness. The DistinctivenessDistinctiveness of an impact is defined under Lanham Act as a mark's ability to be distinguishable. These then help the consumers identify a product or service's source, thereby allowing them to serve the trademark laws' primary functions. For example, the distinctive nature of the mark, color, shape, fragrance, and even a combination of both, should not be dispositive. Additionally, there should be the conceptualization of the DistinctivenessDistinctiveness in line with descriptive, generic, suggestive, fanciful, and subsequent arbitrary.
Comparison of franchisors trademark protection as an intellectual property unit in Saudi Arabia and the United States of America.
The United States of America is one of the countries that have embraced the franchisors trademark protection as an intellectual property unit. Additionally, Saudi Arabia as a country also has adopted franchisors trademark protection as an intellectual property right. Both of these two countries share some similar aspects of intellectual property right, for example, considering the descriptive mark and secondary meaning in the acquired DistinctivenessDistinctiveness, both the United States of America and Saudi Arabia share the same principle that for franchisors trademark to be registered there has to be an essential quality in the characteristic of ingredients of services and products that the franchisor are selling.
Besides, both Saudi Arabia and the United States of America share the franchisors trademark protection on the use, purpose subject matter, and the quality capacity of the product or the service that is registered for franchisors trademark protection (Dratler Jr, 2020). In both the United States of America and Saudi Arabia, the end effect of franchisors trademark protection does not require the purchasers of products and services- to have and or exercise any imagination. Franchisor trademark protection in Saudi Arabia outline that a trademark application has to be filled before a patent office by a local agent. In some instances, Saudi Arabia provides the online systems from which the registration can is made, and the application is reviewed within 14 days (Parr, 2018). On the contrary, the end effect aims to understand the goods and services subjected under the franchisors' trademark protection while narrowing to the franchise's intellectual property aspect.
Comparing the United States of America and Saudi Arabia, both the franchisor's trademark protection as an intellectual property unit narrows the complex descriptive categories to accomplish its trademark or part of the mark. In this light, both the two countries' intellectual property law aims at the judicious presentation of the basic categories of evidence that may be presented in the franchisors' trademark protection with a view of achieving distinctiveness (Parr, 2018). For example, both countries have principles that revolve around prior registration, exclusive and continuous use, and, subsequently, any other appropriate evidence of acquired distinctiveness relevant to the franchisor's agreement and trademark protection.
These principles dictate the international intellectual property laws that are used to prosecute the franchisors' trademark violation. For example, the United States of America prosecution on federal law has to be examined in detail by the prosecutor to determine the franchisor client claim. The challenged claims are those of ownership of earlier registration and that of successive and continuous use of the registration in trade and aid to work. In this regard, the international intellectual property laws oversee Saudi Arabia as well-finds balance in establishing prima facie to establish the distinctiveness of the franchisors trademark protection.
Franchisors trademark protection and benefits in Saudi Arabia and the United States of America.
The acquisition of a trademark comes with benefits for the producer or the seller who has the trademark's rights. The primary service that the holders of the brand both in the United States of America and Saudi Arabia stem from the fact that the competitors of the producer or the seller cannot use the trademark, and in the event of the latter, there are legal consequents for the breaching of these intellectual property rights (Parr, 2018). In the United States of America, there are both the registered trademarks and non-register trademarks, yet both trademarks are subjected to protection under the Lanham Act. Like Saudi Arabia, the holders of the brands have different benefits in the United States of America. For example, the trademark holder is assumed to be the valid owner of the trademark rights.
Additionally, the trademark holders in both the United States of America and Saudi Arabia have high chances of compensation if their franchisors' trademark protection has been infringed. The franchisor's balance could get the remedies from triple damages offenses and subsequent criminal offenses and penalties that can favor working in their favour. The holders of franchisors' trademark protection in the United States of America and Saudi Arabia enjoy the benefits of custom services that prevent importing goods that have infringing trademarks (Dratler Jr, 2020). In the same light, it is fundamentally important to note that both the United States of America and Saudi Arabia have the dynamics of business models' evolution. For example, globalization has led to brands penetrating new markets and seeking a new customer base. In this light, businesses apply the different business models in the new markets. For example, a practical franchise application that companies use to stay in the competitive business environment-competition in the corporate world is inevitable. As business apply these models, it is essential for franchisors' to effectively use the trademark as a protection for their intellectual property. Using these benefits and remedies that come from the effective use of intellectual property, the franchisors' trademark protection can have the most impact. Such impact on the frame franchisors protection in both the United States of America too.
Franchisor principle and supplementary register of the trademark in the United States of America.
Licensing of franchisors trademark as an aspect of intellectual property laws in the United States of America revolves around distinctiveness and descriptiveness. In this regard, the brand is descriptive and yet not registered on principle register; the franchisor can have some specific rights that supersede what the common law protects (Parr,2018). For example, the client may register the descriptive trademark, thereby making the client qualify for the future secondary meaning in trademark registration. The secondary importance of the trademark can be used in commerce for some time, and it makes it possible for other competitors not to confuse the brand.
Consequently, the United States of America's intellectual property laws compare the principles and the supplemental in different arrays in the trademark register. For example, distinctiveness is required in direction but not in the supplementary (Dratler Jr, 2020). Additionally, the distinctive marks that are eligible for are fundamental in principle, yet the same aspect lacks supplemental. The intellectual propert...