International Franchise Trademark Registration : Legal Regimes, Costs, and Consequences

For many years, the rise in number of international units operated by U.S. franchisors has outpaced domestic growth. As the trend toward globalization accelerates, franchise owners must determine the most effective methods to protect their intellectual property rights wherever they do business. The authors thus develop an empirical framework to analyze the choices of international franchise networks and to improve the regulatory regimes that all trans-border trademark holders encounter.The two most prominent multi-filing applications are the European Union Trademark system (formerly known as the European Community Trademark system) and the Madrid Protocol system. In consideration of the two systems, the authors weigh the marginal costs and benefits of each trademark registration system and examine some of the factors that influence how and why franchisors pursue the different systems. In addition, the authors assess some of the factors that contribute to a country's decision to accept or reject a franchisor's trademark registration application through the Madrid Protocol system. Finally, the authors explore the implications for franchise law