Recent Cases — February 2012
Terminated Franchisee’s Continued Use of Trademark Qualified as Counterfeiting A federal district court in Indiana held that a terminated real estate franchisee who continued to use the trademarks of its former franchisor was liable for trademark infringement, trademark dilution, and most notably, trademark counterfeiting. The franchisee was also found liable for false advertising and false designation of origin under the Lanham Act, unfair competition, and breach of the franchise agreement. Federal judicial circuits are currently split regarding whether a terminated franchisee’s continued unauthorized use of a franchisor’s trademark can constitute counterfeiting. If the Indiana district court’s decision is upheld, it… Read more
New Laws and Regulations — February 2012
International Franchise Expo Registration Exemption The New York Attorney General’s Office has created a new franchise registration exemption for its upcoming 2012 International Franchise Expo. This three-day exemption will allow franchisors that are not registered in the State of New York, as well as international franchisors that do not have the required Franchise Disclosure Document (“FDD”), to attend the trade show and promote their opportunities to attendees. Unregistered franchisors are prohibited from selling franchises at the show or providing copies of their FDD. In addition, an unregistered franchisor must display a sign explaining that, if the franchisor decides to establish… Read more
Policy and Legislative Updates
Business Activity Tax Simplification Act A bipartisan group of lawmakers are pressing for the passage of the Business Activity Tax Simplification Act (“BATSA”). The federal legislation would prohibit states and localities from levying certain taxes, including franchise taxes, on businesses that do not keep employees or property in that jurisdiction for more than two weeks during the year. In a recent op-ed in support of the legislation (available here), Reps. Goodlatte and Scott noted that a growing number of state and local governments have adopted standards to tax out-of-state businesses that may conflict with the Supreme Court’s interpretations of the… Read more