The legislation intends to provide a safe harbor for franchisors, making it clear that their licensing agreements do not create joint employer liability under labor laws. This is particularly relevant as businesses increasingly leverage brand licensing within broader corporate structures. The intention behind this amendment seems to be fostering more straightforward business practices without the added risk of legal complications tied to employment relationships.
Summary
SB2173, known as the Trademark Licensing Protection Act of 2023, seeks to amend the Trademark Act of 1946. The bill clarifies that licensing a trademark for use by related companies cannot be interpreted as establishing an employment relationship between the trademark owner or an authorizing person and the related company or its employees. By specifying what constitutes control over a trademark, the bill aims to protect franchisors and streamline relationships between trademark owners and related businesses.
Contention
The potential points of contention surrounding SB2173 relate to the interpretations of 'control' and 'employment relationship.' Critics may argue that the bill could lead to misclassification issues or diminish protections for employees by limiting the accountability of franchisors regarding labor practices. On the other hand, proponents argue that the bill strengthens business operations and prevents unnecessary legal entanglements, which could hinder franchisor and franchisee cooperation.
A resolution recognizing the importance of trademarks in the economy and the role of trademarks in protecting consumer safety, by designating the month of August as "National Anti-Counterfeiting and Consumer Education and Awareness Month".
A resolution recognizing the importance of trademarks in the economy and the role of trademarks in protecting consumer safety, by designating the month of July as "National Anti-Counterfeiting and Consumer Education and Awareness Month".
A resolution recognizing the importance of trademarks in the economy and the role of trademarks in protecting consumer safety, by designating the month of July as "National Anti-Counterfeiting and Consumer Education and Awareness Month".