Case Study: Sunbeam V. Chicago American Manufacturing

Law360, New York (July 23, 2012, 1:32 PM EDT) -- In Sunbeam Products Inc. v. Chicago American Manufacturing LLC,[1] the Seventh Circuit, in a Judge Frank Easterbrook-authored opinion, became the first circuit court to issue a reported opinion directly considering and rejecting the decades-old holding of the Fourth Circuit in Lubrizol Enterprises Inc. v. Richmond Metal Finishers Inc.,[2] that a licensee’s rights to use a licensed mark or intellectual property is necessarily lost upon debtor-licensor’s rejection of an executory license agreement. 

In so holding, the Sunbeam court reasoned that the enactment of Section 365(n) of the...
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