Undressing The Risks Of Naked TM Licensing

Law360 (November 4, 2019, 4:00 PM EST) -- Earlier this year, in Mission Product Holdings Inc. v. Tempnology LLC,[1] the U.S. Supreme Court ruled that trademark agreements rejected by a debtor in bankruptcy are not deemed terminated or rescinded. However, it also addressed a significant issue faced by all brand owners, the “naked license."

Brand owners sometimes enter into supplier/distributor agreements to expedite the distribution of branded products in the marketplace. In these agreements, the distributor agrees to purchase and resell to consumers the brand owner’s (or the supplier’s) product under the terms in the agreement.

Brand owners that overemphasize ease of distribution, however, are at risk if their...

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