In 8-1 decision resolving circuit court split, U.S. Supreme Court holds that bankrupt company’s rejection of executory contract containing trademark license constitutes breach of contract, not its rescission or termination, and licensee retains its rights under the license.

The U.S. Supreme Court has agreed to hear a case that could settle a decades-old debate surrounding the fate of trademark licenses in bankruptcy. The Supreme Court granted Mission Product Holdings’ petition for a writ of certiorari from the First Circuit’s decision in Mission Product Holdings, Inc. v. Tempnology, LLC.