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Appellate Advocacy Keyed to Meador, 2nd Ed.
Dairy Queen, Inc. v. Wood
Citation:
369 U.S. 469, 82 S.Ct. 894 (1962)Facts
In December 1949, Dairy Queen, Inc. entered into a licensing contract with the owners of the “DAIRY QUEEN” trademark, agreeing to pay approximately $150,000 for exclusive rights to use the trademark in certain parts of Pennsylvania. The contract required a small initial payment with remaining payments to be made at 50% of all amounts received by Dairy Queen on sales and franchises, with minimum annual payments regardless of receipts. In August 1960, the trademark owners claimed Dairy Queen had committed a material breach by defaulting on payments (allegedly over $60,000 in arrears) and notified Dairy Queen of the termination of the contract. When Dairy Queen continued using the trademark, the owners filed suit seeking injunctive relief to prevent further trademark use, an accounting to determine the exact amount owed, and a judgment for that amount. Dairy Queen denied any breach of contract, claiming the parties had orally modified the contract in 1955 to remove the minimum payment requirement, and demanded a jury trial. The district court granted the plaintiffs’ motion to strike the jury demand.
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