Perpetual Doesn't Mean Forever: Licenses in Bankruptcy

Law360, New York (October 3, 2006, 12:00 AM EDT) -- Most people know that exclusive trademark licenses contain clauses that allow for termination of the license if the licensee fails to pay royalties, fails to maintain the quality of the licensed products up to the licensor's standards, and for other sundry reasons.

What some licensees fail to appreciate is that the license agreement and license might also be rejected and terminated in a bankruptcy case filed by the licensor.

Bankruptcy offers licensor debtors the opportunity to have executory contracts like most trademark licenses rejected, thereby terminating...
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