1.     Overview

Generally, license agreements are “executory contracts” in bankruptcy. Executory means performance is due from both sides. When a party to an executory contract becomes a debtor in bankruptcy, it may either reject or assume the contract. However, non-debtor parties (or “counterparties”) enjoy some protections, especially when the contract is a license agreement for intellectual property.

The basics.

Following the enactment of the Personal Insolvency Act, the first steps have been taken to implement the new regime in the Irish insolvency landscape with the making of two Ministerial Orders by the Minister for Justice, Mr. Alan Shatter.

The Orders set 1 March 2013 as the establishment date for the Insolvency Service of Ireland which will operate the new debt resolution arrangements provided for in the Act. The Commencement Orders also enables the Insolvency Service to begin authorising approved intermediaries and personal insolvency practitioners.