Is Your Trademark License Assignable In Bankruptcy?
June 14, 2012, 12:51 PM EDT
Law360, New York (June 14, 2012, 12:51 PM EDT) -- The Seventh Circuit Court of Appeals recently addressed in In re XMH Corp., 647 F. 3d 690 (7th Cir. 2011), whether or not trademark licenses are assignable in bankruptcy proceedings. In its ruling, the court held that a trademark license may not be assigned by a licensee in a bankruptcy proceeding unless there is an express provision in the contract permitting assignment by the licensee.
XMH Corporation (formerly Hartmarx), and a subsidiary, Simply Blue, filed for bankruptcy under Chapter 11 of the Bankruptcy Code. XMH asked...