THE DISPUTE
USA, Texas, Energy & Natural Resources, Insolvency & Restructuring, Litigation, K&L Gates LLP, European Securities and Markets Authority, Title 11 of the US Code, United States bankruptcy court
Executive Summary
Last week, the Supreme Court (the “Court”) ruled a debtor in bankruptcy cannot use the Bankruptcy Code to cut off a licensee’s rights under a license to use the debtor’s trademarks. This ruling resolves a Circuit split and brings the treatment of trademark licenses from a bankrupt debtor in line with patent and copyright licenses, which are protected statutorily by Bankruptcy Code section 365(n).