Supreme Court: Rejection Of A Trademark License By A Bankrupt Licensor Doesn’t Terminate The License

What happens if you are a trademark licensee and your licensor files for bankruptcy protection?
Can the licensor unilaterally terminate your license and prohibit you from using the license – even if you’re in the middle of a long-term contract and you are complying with the deal?  Many licensors have been doing this, using the bankruptcy courts to extricate themselves from unprofitable or unsatisfactory licensing agreements.  But on May 20, 2019, in Mission Product Holdings, Inc. […]

By | July 25th, 2019 ||

Possession Is Not ‘Nine Tenths Of The Law’: Impounded Vehicles Must Be Returned When A Bankruptcy Petition Is Filed

In a recent opinion, the Court of Appeals for the Seventh Circuit ruled the City of Chicago must return repossessed and impounded vehicles upon receiving a bankruptcy petition, or run the risk of violating the automatic stay under Section 362 of the Bankruptcy Code.
Background
In In re Fulton, which was consolidated with three other appeals brought by the City of Chicago (In re Howard, In re Peake, and In re Shannon), the issue was whether the City could […]

By | July 12th, 2019 ||

The Supreme Court Decision Mission Product Holdings, Inc. v. Tempnology, LLC Has Broad Implications For Licenses And Other Agreements In Bankruptcy: Analysis

On May 20, 2019, the United States Supreme Court decided the case Mission Product Holdings, Inc. v. Tempnology, LLC. The facts of the case and its potential implications were discussed previously on this blog here. In the 8-1 decision authored by Justice Kagan, the court ruled that agreements rejected by a debtor in bankruptcy will not be deemed terminated or rescinded. Rather, the non-debtor party will retain whatever rights it would have under applicable non-bankruptcy law […]

By | June 3rd, 2019 ||