International Corporate Rescue
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Vol 16 (2019) - Issue 4
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In re Tempnology, LLC, Rejection of a Trademark Licence is Not Termination of that Licence
Seth H. Lieberman, Partner, and Patrick Sibley, Partner, Pryor Cashman LLP, New York, USASynopsis
Recently, the US Supreme Court in Mission Product Holdings, Inc. v Tempnology, LLC resolved what the International Trademark Association called 'the most significant unresolved legal issue in trademark licensing' when it found that a contract rejected in bankruptcy pursuant to section 365 of the Bankruptcy Code is a breach, and not an outright revocation, of the contract. In so ruling, the Court held that the licensee of a rejected contract can continue to use the mark post-rejection.
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