IP In Bankruptcy — Insights From 6th, 7th Circs.

Law360, New York (July 17, 2012, 2:26 PM EDT) -- Recently, the Sixth Circuit and Seventh Circuit Court of Appeals each issued decisions on important intellectual property issues in bankruptcy.

In the first decision, the Sixth Circuit held that bankruptcy's automatic stay may not protect a debtor from lawsuits to stop ongoing trademark and service mark infringement. The decision will be welcomed by persons with valuable intellectual property portfolios because infringers will not be able to shield ongoing infringement through bankruptcy.

In the second decision, the Seventh Circuit held that a bankrupt licensor’s rejection of a trademark license does not terminate the licensee’s right to use the intellectual property. The decision...

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