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Re: VW LICENSING PROGRAM (loooong)


[This is a copy of My reply back to VW about their licensing program email that I received on Monday. I just want everyone to realize how vague the Licensing Agreement they are pushing really is.  Feel free to contact me off list if you have additional comments about their Agreement (see URL below) and forward to whomever you think would have interest.  Thanks for reading.  Big Al  ]



Hello VW Licensing program,
Hopefully someone will actually see this and read and reply to this and not go into a dead account...

Thank you for writing me the letter quoted at the bottom of this email.

I fully understand that VW needs to protect it's Identity and am in favor of prosecution of those who intentionally profit from the illegal use of VW's Trademark.  However, I also know of the current trend by VW's lawyers to sue anyone who even mentions VW's trademarks when describing VW's products on a fan website or selling personal property that was purchased from VW.

I have read your agreement website and am glad to see that VW has decided to back off of the instant litigation approach to the once-loyal enthusiast base.

There are problems I see in your current agreement website which may prevent people from trusting VW on this agreement.  I have included 9 points below that I would want to have clarification before I would want to proceed with the application:


1) on http://www.vwtrademarks.com/us/vwlicense3.htm 
particularly:  "Step 5: VWoA Reviews and Decides Whether to Approve your Application."

What will scare most people from proceeding with your agreement is that you do not state what happens if VW decides to decline the application due to the website not being to the liking of VW representatives.

Seeing VW's recent litigation track record, it could be assumed that if the application is denied, the applicant can also expect to receive lawsuit papers shortly also.

Basically, it sounds like VW is asking people to submit themselves for a lawsuit or in other words self-incrimination.

Personally, I would not want to apply for this license until I know what the entire process entails.

I would suggest that you add to your agreement what will happen if the site is found to NOT be satisfactory.


2) on http://vwtrademarks.com/us/vwterms.htm
Re: "General Terms and Conditions"
	"Domain Name:"
		"If you currently own a domain name that is acceptable to the program, you hereby agree to transfer the name to VWoAâs domain name registry."

More definition is needed of this term.

What exactly is "VWoAâs domain name registry"?

It can be interpreted that Domain Name Owners must turn over ownership of their domain name registry to VWoA.  It seems to me that this statement is intentionally vague and therefore misleading.

If VW wants to own a domain name owned by someone else, they should compensate the owner unless it can be proven that the site is intentionally misleading viewers into thinking that the site IS Volkswagen.  Otherwise VW is committing Domain Name theft.

I also see in the License Agreement:
" THIS ... LIMITED TRADEMARK LICENSE AGREEMENT ...  by and between [Your Name], the registrant of [Your Domain Name] ("Domain Name") and the owner of the Internet website accessible by this domain name ("Licensee"), [Licensee's Address], and Volkswagen of America, Inc., ... "

and under the Preamble:
 "B. Licensee is a Volkswagen Enthusiast, the registrant of the above-referenced domain name and owner of the Internet website accessible by this domain name. "

This still does not clarify who is the owner of the Domain Name.

This needs to be clarified before I could agree to this term.



3) on http://vwtrademarks.com/us/vwterms.htm
Re: "General Terms and Conditions"
	"Quality Standards and Monitoring."
		"We reserve the right to revoke our permission at any time..."

Again, it sounds as if you are threatening litigation if you don't approve of anything.

You need to provide a "Standards Guide" to your applicants BEFORE they apply so that they know what will be required.

This guide would need to be published before I could agree to your terms.


4) on http://vwtrademarks.com/us/vwterms.htm
Re: "General Terms and Conditions"
	"Term and Termination."
		"VWoA may terminate this Agreement at any time without notice, and without liability, upon 24 hours prior written notice to you.  You may terminate this Agreement upon ten days written notice to VWoA.  Upon termination, you must immediately cease all use of the Volkswagen trademarks and service marks."

It is unclear why there is a difference between time allowances.

There is no details as to the process if there is termination to the agreement.

Again it can also be assumed by the applicant that litigation will automatically follow if VW decides to terminate.

This needs to be clarified before I could agree to your terms.


5) on http://vwtrademarks.com/us/vwclub.htm
and  http://vwtrademarks.com/us/vwenthusiast.htm
second paragraph: "After your License is reviewed, VWoA will send a message to you at the email address you supplied in your application advising you of our decision on your application. (It may take up to 30 days, so please be patient.)"

again there is no statement on what happens if application is denied.
See points 1 and 4 above.

This needs to be clarified before I could agree to your terms.


6) under ARTICLE 1. DEFINITIONS.
	 "1.5 "Non-commercial" shall mean having no functionality to allow for revenue to be generated at the site including, but not limited to, commercial links, advertising of any kind, and shopping carts"

First: URL links to other sites, whether commercial or not, does not necessarily constitute revenue being generated for the site having the URL link. It is a common courtesy among webmasters.

Second: what happens if there is already a contract between the site and a legitimate sponsor (VW-related or non VW related)  Will VW buy out these contracts?

Exclusivity contracts are usually accompanied by payments from the party requesting exclusivity.

This needs to be clarified before I could agree to your terms.


7) under Club License Agreement application form.

"Trademark/s
(Use Control + Click to select two trademarks)
Do not select more than two trademarks as your application will be
rejected and you will be asked to reapply with only two trademarks."


Why are you requiring that a club be limited to two models of VW. There are many clubs that encourage more than two models.  For Example, You are limiting clubs to be New Beetle and Passat, but can't allow Jettas?

This is a ridiculous requirement and I would never agree to your terms if I were in charge of a club.


8) under Club License Agreement application form.

"Approximate Membership Of Your Club" as a required form field.

What does it matter how many members are in any particular club?  Will it make a determination on if the application is approved or denied? 

Or does that give your lawyers an indication of how many people can be included in the litigation?


This would need to be made optional in the agreement form before I would apply.


9) under Club License Agreement application form.
"*Promotional Merchandise Produced By Your Club
Separate the items using comma (,)"

In the Agreement, no products can be sold on the website.  No Shopping carts can be allowed. Therefore, this field is asking applicants to implicate themselves for litigation.  

If this were asked as "What products would your club DESIRE to produce:" I would be more likely to answer this field.



Please put clarification on your website as to these points and I would be happy to proceed with the application IF the clarifications meet my approval.
 
Thank you for your time,
Al




<license@vwtrademarks.com> writes:
>Dear Sir or Madam:
>
>This e-mail address has been identified as belonging to a
>Volkswagen Club or Enthusiast. Volkswagen in the United States
>and Canada has some great news we would like to share with you.
>
>As you may have heard, Volkswagen of America, Inc. and
>Volkswagen Canada Inc. broke into a new arena of licensing!
>Our Trademark Internet Licensing Program for Volkswagen vehicle
>enthusiasts and clubs in the United States and Canada is now LIVE.
>You can visit us online at [
>http://vwtrademarks.com/trademarks?goto=vwlinkUIOAgqEpcJZIgvnJDdRwytSw
>]http://vwtrademarks.com/trademarks
>
>The Internet Licensing Program is a free program and offers VW Clubs
>and Enthusiasts the opportunity to apply for a license to use
>Volkswagen trademarks and service marks on the Internet and in
>Internet domain names if certain conditions are met.
>
>If you are a Club or Enthusiast and have any intention of using
>or are currently using any Volkswagen trademarks, you must
>apply for a trademark license. If you are currently using Volkswagen
>trademarks on the Internet or in a domain name, this email does not
>constitute any agreement or acknowledgment that your uses adhere or
>conform to the Licensing Agreement. The Licensing Application Process
>will describe the program in detail. We look forward to hearing from you
>and to your participation in this program. Once you are licensed, you
>will
>obtain benefits only available to licensees such as listing your Club
>Events on Volkswagen of America's Club Event Calendar.
>
>So, if you think you may be interested in being a part of our licensed
>family or are just interested in more information regarding Volkswagen's
>registered trademarks, wander into [
>http://vwtrademarks.com/trademarks?goto=vwlinkUIOAgqEpcJZIgvnJDdRwytSw
>]http://vwtrademarks.com/trademarks
>
>and feel free to take a look around! And please do not hesitate to send  
>
> this email to anyone you may know who would be interested in
>participating
>
>in this program.
>
>
>Sincerely,
>
>Volkswagen of America, Inc. 


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