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Debtor May Assume License as Executory Contract Despite Anti-Assignment Language
In a recent decision of interest to the leasing community, the U.S. District Court of Maryland has held that a Chapter 11 debtor could assume a software license agreement (SLA), as an executory contract, although the agreement contained a clause that the debtor could not “assume or assign” the agreement, and even though the assignability of the SLA was clearly precluded by federal copyright law.
In the case of RCC Technology Corp. v. Sunterra Corp. (287 B.R. 864 (2003)), the creditor, Resort Computer Corporation (RCC), appealed an order of the U.S. Bankruptcy Court denying RCC's motion to “deem rejected” a SLA between it and the bankruptcy debtor, Sunterra Corporation. The District Court affirmed this order, but grounded its decision upon other reasons than those articulated by the U.S. Bankruptcy Court.
The court relied upon a long line of authorities in reaching its decision. (See, e.g. Everex Sys., Inc. v. Cadtrak Corp. (In re CFLC, Inc.), 89 Fed. 673 (9th Cir. 1996); In re Access Beyond Techs., Inc., 237 B.R. 32, 43-44 (Bankr.D.Del. 1999)). The court held that intellectual property licensing agreements such as the SLA are executory contracts. The court found these authorities to be persuasive on the issue.
Spurred By Data Breaches, CLOs Are Increasing Cybersecurity Leadership Role
Chief information officers still bear the brunt of cybersecurity worries at many companies. But a study by the Association of Corporate Counsel Foundation finds that chief legal officers are increasingly taking a leadership role in cybersecurity strategy.
GCs Want to Tap Into AI But Lack Roadmap, Report Shows
General counsel are eager to tap the promise of generative AI. But without clear technology road maps, many legal departments are struggling to turn that interest into action.
Is Google Search Dead? The Key to Thriving In an AI-Driven World
Part Two of this two-part articleexamines practical steps marketers must take to succeed in this changing landscape by embracing a multichannel, AI-driven approach to their marketing and PR efforts. This means rethinking your strategy to build direct connections with your audience, using platforms that elevate your visibility and focusing on storytelling that resonates.
Shifting Crypto and Cyber Enforcement Priorities In SEC
When the SEC issues the next annual enforcement report for fiscal year 2025, we expect securities offering actions and investment adviser actions will almost certainly be up, and the “crypto” and “cyber” cases will almost certainly be down. Public statements by the new SEC administration have said as much, but even more telling than public statements are the allocation of limited enforcement resources.
Seventh, Ninth Court Rulings Tighten Reach of Federal Video Privacy Protection Act
The VPPA may be nearly four-decades old and video-rental stores largely a thing of the past, but the rise of online content, streaming services and ancillary activities has brought with it frequent litigation based on the VPPA. The key challenge in these litigations is how to interpret the VPPA’s 1980s terms in light of today’s digital advances.