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High Court Places Heavy Burden On Bankrupt TM Licensors

Law360 (May 30, 2019, 1:56 PM EDT) -- Last week’s Supreme Court decision is sure to make waves in the often-turbulent ocean of trademark licensing.

In Mission Product Holdings Inc. v. Tempnology LLC,[1] the United States Supreme Court held that an authorized trademark licensee can continue to use a bankrupt licensor’s trademarks despite the attempted “rejection” of the licensee agreement by the licensor.

This decision resolved a significant circuit split, at least for trademark licensing agreements, as to whether Section 365 of the Bankruptcy Code can shield a debtor-licensor from its licensees’ continued use of licensed trademarks. Trademark owners now, more than ever, have the wind at their faces...

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