Debtors Cannot Assume or Assign Trademark License Without Licensor's Consent
March 29, 2006
Trademarks serve as symbols of good will and are a valuable asset of the business associated with the mark. Not surprisingly, trademark licenses typically require the licensor's consent for assignments, because licensors want the right to pass on the abilities of new potential licensees. In the event of bankruptcy filing by the licensee, the contractual restriction on assignment is ordinarily unenforceable. <i>See</i> 11 U.S.C. ' 365(f)(1). Bankruptcy Code ' 365(c)(1), however, provides an exception to this general rule: a debtor may not 'assume or assign' any executory contract without consent of the non-debtor if 'applicable law' provides that the non-debtor can refuse to accept performance from a third party.
Integrating Software Escrows into Intellectual Property Strategy
March 01, 2006
Software developers invest a great deal of time and effort developing complex code that performs unique functionality for which there is a viable market. These software developers typically offer software licenses that only license object code, <i>ie</i>, the code that can be read by a machine, rather than the source code, <i>ie</i>, code that can be deciphered and read by a person.
IP News
March 01, 2006
Highlights of the latest intellectual property news from around the country.
The Dismantling of the DMCA's Anti-Circumvention Provisions
March 01, 2006
According to a recent decision in the U.S. District Court for the District of Columbia, the use of an illicitly obtained password and username to enter an otherwise secure Web site does not violate the anti-circumvention provisions of the Digital Millennium Copyright Act ("DMCA"). In <i>Egilman v. Keller & Heckman LLP</i>, 2005 U.S. Dist. LEXIS 28245 (D.D.C. Nov. 10, 2005), the court held that the law firm Keller & Heckman and others working in concert with it who entered Dr. Egilman's Web site through the use of a username and password that they were not authorized to use had not violated the DMCA, regardless of how the username and password were obtained. This surprising decision runs counter to other decisions interpreting the DMCA and would appear to create a significant loophole to the DMCA's anti-circumvention provisions.
Downloading Copyrighted Songs on File-Sharing Network Is Not 'Fair Use'
March 01, 2006
In an important decision interpreting the fair use provision of the Copyright Act (17 U.S.C. §107), the U.S. Court of Appeals for the Seventh Circuit recently held that downloading full copies of copyrighted material without compensation to authors cannot be deemed "fair use." In <i>BMG Music v. Gonzalez</i>, 430 F.3d 888 (7th Cir. 2005), Judge Frank H. Easterbrook, writing for a unanimous three-judge panel, rejected the defendant's argument that she was immune from liability because she was merely sampling songs that she had downloaded from the KaZaA file-sharing network on a "try-before-you-buy basis."
The Market Power Presumption Revisited: Court to Consider Whether Patents Confer Market Power in Tying Cases
February 02, 2006
Antitrust law has long prohibited producers with market power from engaging in tying arrangements, agreements in which the sale of a highly desired "tying" product is conditioned on the purchase of a second item. The Supreme Court has held that sellers must exert power over the marketplace to be guilty of illegal tying under the Sherman Act. Does the existence of a patent on a product create a presumption of market power? On June 20, the Supreme Court granted certiorari in <i>Illinois Tool Works Inc. v. Independent Ink, Inc.</i>, 2005 WL 770269, *1 (U.S.) (2005) to consider this question.
IP News
February 02, 2006
Highlights of the latest intellectual property news from around the country.
