McDonald's Group in Canada sues Boston Pizza affiliate over trademark

Dec. 1, 2002

VANCOUVER, British Columbia -- Boston Pizza International Inc. (BPI) and Boston Pizza Royalties Income Fund (TSX: BPF.UN) (the "Fund") announced that Boston Pizza Royalties Limited Partnership (the "BP Royalties Limited Partnership"), an affiliate of the Fund, was served on Nov. 27 with documents naming it as respondent in a notice of application in the Federal Court of Canada in an ongoing dispute between BPI and entities affiliated with McDonald's Restaurants of Canada (the "McDonald's Group").

The dispute centers on the McDonald's Group's attempts to open restaurants in Canada under the "Boston Market" name, but without a registered trademark for that name. BPI wants the Canadian Federal Court to prevent the McDonald's Group from doing so without a valid registered trademark.

Mike Cordoba, president and chief executive officer of BPI and a director of the general partner of BP Royalties Limited Partnership, stated in a release that "one of the trademarks being challenged by McDonald's Group in their counterclaim has been used by BPI and predecessor entities for over 30 years and was registered in 1970."

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire indirectly certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada. The trademarks are licensed to BPI for 99 years for which BPI pays the Fund 4 percent of franchise revenues of its 154 Boston Pizza restaurants in Canada.

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