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Justices Save TM Licensees From Contract Conundrum

Law360 (May 21, 2019, 10:04 PM EDT) -- The U.S. Supreme Court handed trademark licensees a significant victory Monday and spared them a potential “sea change” in contract law by ruling that brand owners in bankruptcy protection do not have the unilateral right to rescind trademark licensing agreements, experts say.

The justices resolved a circuit split dubbed as "the most significant unresolved legal issue in trademark licensing,” ruling in an 8-1 decision that a trademark licensee has the right to continue using a mark even if the brand licensor rejects the underlying agreement in bankruptcy. The rejection of a trademark agreement, like other contract breaches, is a breach of that agreement and...

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Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only


Supreme Court

Nature of Suit

3422 Appeal 28 USC 158

Date Filed

June 12, 2018

Law Firms


Government Agencies