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Remedies Keyed to Tabb, 8th
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 written licensing contract with the owners of the “DAIRY QUEEN” trademark, agreeing to pay $150,000 for exclusive rights to use the trademark in certain Pennsylvania territories. The contract required an initial payment followed by payments of fifty percent of all amounts received from sales and franchises, with minimum annual payments to ensure completion within a specified period. In August 1960, the trademark owners notified Dairy Queen of contract termination due to alleged material breach for failure to pay amounts exceeding $60,000. Despite this termination notice, Dairy Queen continued using the trademark. The trademark owners filed suit seeking injunctive relief, an accounting to determine amounts owed, and a money judgment. Dairy Queen answered denying breach, claiming an oral modification in 1955 eliminated minimum payment requirements, and demanded jury trial under Federal Rule 38(b).
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