87R1289 JES-D
 
  By: Sherman, Sr. H.B. No. 597
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.