Can a franchisor take legal action if a franchisee chooses not to renew their contract but continues using the trademark?
In the case of Ching Shin Fu Chuan Beverage, the franchisor charged franchisees an annual fee of NT$12,000.
One former franchisee continued using the trademark after the contract ended.
Despite being notified to renew the contract, the former franchisee ignored the request.
The franchisor sent two official demand letters via statutory notice (burofax), which the franchisee also ignored.
The franchisee knowingly infringed the trademark for over five years.
Final Court Ruling:
The court awarded the franchisor NT$600,000 in damages for trademark infringement.
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