A Growing Divide On Trademark License Rights In Bankruptcy

Law360 (June 13, 2018, 5:16 PM EDT) -- The U.S. Supreme Court has been asked to clarify the extent to which trademark license rights survive rejection in bankruptcy proceedings, as the lower courts grow increasingly divided.

The petition for certiorari arises from the First Circuit's decision in Tempnology,[1] the most recent circuit court decision in a series of cases addressing the treatment of trademark licenses in bankruptcy. In Tempnology, the First Circuit held that rejection of a trademark license strips a licensee of its trademark rights under the license. This holding, which is consistent with case law in the Fourth Circuit,[2] directly conflicts with court decisions in the Third[3] and Seventh[4] Circuits as well as with a...

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