Case Study: Firehouse Restaurant Group V. Scurmont

Law360, New York (October 31, 2011, 12:02 PM EDT) -- A recent federal court jury verdict places a renewed focus on a franchisor’s duty of candor to the United States Patent and Trademark Office in securing its trademarks as well as the potential issues it may face from disgruntled franchisees if a mark is canceled.

At the end of August 2011, a jury in South Carolina found that Firehouse Restaurant Group Inc. (“FRG”), the owner and franchisor of more than 350 Firehouse Subs restaurants, had committed fraud before the USPTO in procuring a federal trademark registration...
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