Recently, the Supreme Court in Mission Product Holdings, Inc. v Tempnology, LLC resolved what the International Trademark Association called "the most significant unresolved legal issue in trademark licensing" when it found that a trademark licensing agreement rejected under the Bankruptcy Code is a breach, and not an outright revocation, of the agreement. In so ruling, the Court held that the licensee of a rejected contract can continue to use the mark post-rejection.
In their article for International Corporate Rescue,Seth Lieberman, co-head of Pryor Cashman's Bankruptcy, Reorganization + Creditors' Rights Group, and Patrick Sibley examine the Court's decision and what it means for bankruptcy trademark licensors and licensees going forward.
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