Allowing restaurant franchises without applying for a trademark—can that really land someone in jail?
Are there still people today who allow restaurant franchises without registering a trademark, and end up in jail for it?
Taiji Food Company committed trademark infringement by opening five stores.
Not only was the responsible party sentenced to four months in prison,but they were also fined NT$800,000 in civil court.Taiji Food Company committed trademark infringement by opening five stores.
Not only was the responsible party sentenced to four months in prison,
but they were also fined NT$800,000 in civil court.
Originally, the trademark owner of “Tai G Store” claimed NT$2.5 million in civil damages.
The defendant, Taiji Company, had a total sales revenue of NT$208.34 million from January 2018 to June 2022.
The court determined that evaluating the entire revenue as profits from infringement was unreasonable,
and thus reduced the amount to NT$800,000.
In the criminal case, although Taiji Company’s application for the same-name trademark had previously been rejected in the food and beverage category,
they continued to use it,
which clearly constituted trademark infringement,
and the court sentenced them to four months in prison.
If a trademark is only used but not registered, it not only fails to protect the brand but also cannot safeguard the rights and interests of franchisees.
When a legitimate trademark owner enforces their rights, everyone has to change their signage!
The worst part is that the franchise headquarters may even face civil and criminal liability.
Be sure that the brand you plan to (develop) franchise
not only has a registered trademark, but the scope of protection applied for must also be accurate!
What else would you like to know about franchising?
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