Litigation

Jury Will Determine if Trademark License Creates Franchise Under Arkansas Franchise Practices Act

By H. William Allen et al.

The Eastern District of Arkansas denied cross motions for summary judgment in Otto Dental Supply, Inc. v. Kerr Corp., 2008 WL 410630 (E.D. Ark. 2/13/08).

For 25 years, Otto Dental was an authorized dealer of Kerr, using Kerr's trademarks to market and sell its goods. In 2004, Kerr imposed a purchasing requirement on its dealers. When Otto could not meet the requirement, Kerr terminated the relationship. Otto argues the parties formed a franchise under the Arkansas Franchise Practices Act, and Kerr violated the act. See A.C.A. § 4-72-201, et seq. Kerr argues the parties did not create a franchise.

Both parties moved for summary judgment, but the court determined that the jury must decide whether the parties created a franchise.

Full post as published by Arkansas Business Litigation Blog on February 20, 2008 (boomark / email).