Trademark Licenses Are Executory Contracts In Bankruptcy
November 2, 2012, 1:16 PM EDT
Law360, New York (November 2, 2012, 1:16 PM EDT) -- In In re Interstate Bakeries Corporation, ___ F.3d ___ (8th Cir. 2012) (IBC), the Eighth Circuit Court of Appeals ruled that a perpetual, royalty-free trademark license was an executory contract and therefore subject to assumption or rejection by the licensor/bankruptcy debtor under section 365 of the Bankruptcy Code.
This decision is at odds with a recent decision from the Third Circuit Court of Appeals, In re Exide Technologies, 607 F.3d 957 (3d Cir. 2010), which found that such a license under similar circumstances was not an...