Supreme Court Holds Trademark Licenses Survive Bankruptcy

In an 8-1 decision on May 20, 2019, the Supreme Court of the United States held in Mission Product Holdings Inc. v. Tempnology, LLC that a debtor's rejection of a trademark license under Section 365 of the Bankruptcy Code amounts to a breach of the license agreement and the licensee retains the rights to the licensed marks for the remainder of the license term.

The opinion, authored by Justice Elena Kagan, concisely resolved a circuit split, stating:

Filed under:
USA, Insolvency & Restructuring, Litigation, Trademarks, Miller Canfield PLC
Authors:
Anita C. Marinelli , Marc N. Swanson
Location:
USA
Firm:
Miller Canfield PLC