Zone of Insolvency

Zone of Insolvency

Tag Archives: Assumption and Rejection

First Circuit Weighs in on Scope of Intellectual Property Protected by Bankruptcy Code Section 365(n)

Posted in US

In a decision last month, the First Circuit maintained the relatively narrow scope of protection provided to intellectual property licensees upon rejection of a license in bankruptcy. Focusing on the statute’s language, the court of appeals held that Bankruptcy Code section 365(n) fails to protect either a trademark license or exclusive distribution rights of a debtor’s trademarked goods, even when the trademark-related rights are incorporated into a license containing other protected intellectual property. See Mission Product Holdings, Inc. v. Tempnology LLC, No. 16-9016 (1st Cir. January 16, 2018). The First Circuit’s decision deepens a split among the circuits regarding … Continue Reading

Foreign or Domestic, Licensees Have Rights Too

Posted in US

Patented_462446689In a United States bankruptcy case, licensees of intellectual property are granted certain protections under Bankruptcy Code section 365(n) if a debtor rejects (terminates) the license. These protections, however, are not guaranteed when the debtor licensor is subject to a foreign insolvency proceeding. Nevertheless, as previously reported in the February 2012 issue of the International Restructuring Newswire, the United States Bankruptcy Court for the Eastern District of Virginia awarded these section 365(n) protections on US patents licensed by a debtor whose German insolvency proceeding was recognized under Chapter 15. The Fourth Circuit recently affirmed the bankruptcy court’s decision, and … Continue Reading