Ever since '365(n) was added to the U.S. Bankruptcy Code in 1988, a party with a license to use intellectual property ' defined to include patents and copyrights but not trademarks ' could rest assured that a bankruptcy filing by the licensor would not divest them of their right to use the property.
Opinion Casts Doubt on Licensees' Ability to Protect Licenses
Ever since '365(n) was added to the U.S. Bankruptcy Code in 1988, a party with a license to use intellectual property — defined to include patents and copyrights but not trademarks — could rest assured that a bankruptcy filing by the licensor would not divest them of their right to use the property. Section 365(n) expressly provides that the rejection of an intellectual property license allows the licensee to retain its rights under the license, including the right to enforce any exclusivity provision. But a 2003 decision by the Seventh U.S. Circuit Court of Appeals, <i>Precision Industries Inc. v. Qualitech Steel SBQ, LLC</i>, casts serious doubt on the ability of licensees to protect their licenses under '365(n).
By
William B. Finkelstein And James H. BillingsleyThis premium content is locked for LawJournalNewsletters subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.
