Bill Text: TX HB597 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the use by third-party delivery services of merchants' marks or other intellectual property; authorizing a civil penalty.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-01 - Referred to Business & Industry [HB597 Detail]
Download: Texas-2021-HB597-Introduced.html
| 87R1289 JES-D | ||
| By: Sherman, Sr. | H.B. No. 597 | |
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| relating to the use by third-party delivery services of merchants' | ||
| marks or other intellectual property; authorizing a civil penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is | ||
| amended by adding Chapter 114 to read as follows: | ||
| CHAPTER 114. THIRD-PARTY DELIVERY SERVICES | ||
| Sec. 114.0001. DEFINITIONS. In this chapter: | ||
| (1) "Mark" has the meaning assigned by Section 16.001. | ||
| (2) "Merchant" means a restaurant or other business | ||
| entity that sells food or other goods directly to consumers. | ||
| (3) "Third-party delivery service" means a business | ||
| entity that: | ||
| (A) allows a consumer to purchase food or other | ||
| goods from a merchant through the entity's proprietary Internet | ||
| website, mobile application, or other Internet-based platform; | ||
| (B) delivers, including through use of an | ||
| independent contractor or agent of the entity, the purchased goods | ||
| to the consumer for a fee that is in addition to the fee charged by | ||
| the merchant for the goods; and | ||
| (C) operates outside of the merchant's business. | ||
| Sec. 114.0002. CONSENT REQUIRED FOR USE OF MERCHANT'S MARKS | ||
| OR INTELLECTUAL PROPERTY. (a) A third-party delivery service may | ||
| not use a merchant's mark or other intellectual property on the | ||
| service's Internet website or application without the prior written | ||
| consent of the merchant. | ||
| (b) To receive valid consent from a merchant under | ||
| Subsection (a), a third-party delivery service must be authorized | ||
| to conduct business in this state. | ||
| Sec. 114.0003. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A | ||
| third-party delivery service that violates Section 114.0002 is | ||
| liable to this state for a civil penalty in an amount not to exceed | ||
| $1,000 for each violation. Each day of a continuing violation is a | ||
| separate violation. | ||
| (b) The attorney general may bring an action in the name of | ||
| the state against the third-party delivery service for: | ||
| (1) injunctive relief; | ||
| (2) recovery of a civil penalty imposed under this | ||
| section; or | ||
| (3) both injunctive relief and a civil penalty. | ||
| (c) An action under this section may be brought in a | ||
| district court in: | ||
| (1) Travis County; or | ||
| (2) a county in which any part of the violation or | ||
| threatened violation occurs. | ||
| (d) A civil penalty collected under this section shall be | ||
| deposited in the state treasury to the credit of the general revenue | ||
| fund. | ||
| Sec. 114.0004. PRIVATE CAUSE OF ACTION. (a) If a | ||
| third-party delivery service violates Section 114.0002, a merchant | ||
| aggrieved of the violation may bring an action for: | ||
| (1) injunctive relief; | ||
| (2) damages in an amount equal to the greater of: | ||
| (A) the merchant's actual damages arising from | ||
| the violation; or | ||
| (B) $5,000, as exemplary damages, irrespective | ||
| of whether the merchant has actual damages; or | ||
| (3) both injunctive relief and damages. | ||
| (b) A merchant that is awarded actual damages under | ||
| Subsection (a)(2)(A) may also be awarded exemplary damages. | ||
| SECTION 2. This Act takes effect September 1, 2021. | ||
