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3 1 . 5 Trademark Ramada Inns, Inc. ( Ramada Inns ) , is a franchisor that licenses franchisees to operate motor hotels using the

31.5 Trademark Ramada Inns, Inc. (Ramada Inns), is a franchisor that licenses franchisees to
operate motor hotels using the Ramada Inns trademarks and service marks. In August, the
Gadsden Motel Company (Gadsden), a partnership, purchased a motel in Attalla, Alabama,
and entered into a franchise agreement with Ramada Inns to operate it as a Ramada Inns
motor hotel. Five years later, the motel began receiving poor ratings from Ramada Inns
inspectors, and Gadsden fell behind on its monthly franchise fee payments. Despite prodding
from Ramada Inns, the motel never met the Ramada Inns operational standards again. One
year later, Ramada Inns properly terminated the franchise agreement, citing quality
deficiencies and Gadsden's failure to pay past-due franchise fees. The termination notice
directed Gadsden to remove any materials or signs identifying the motel as a Ramada.
Gadsden continued using Ramada Inns signage, trademarks, and service marks inside and
outside the motel. In September, Ramada Inns sued Gadsden for trademark infringement. Who
wins? Ramada Inns, Inc. v. Gadsden Motel Company, 804 F.2d 1562, Web 1986 U.S.
ApLexis 34279(United States Court of Appeals for the Eleventh Circuit)
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