Wilmington, DE. Attorney, Patricia S. Rogowski donned the robes of a mock Supreme Court Justice during the Delaware Bankruptcy American Inn of Court meeting held in the main courtroom of the Delaware Bankruptcy Court on February 18, 2020.
The participants re-argued the issues presented in Mission Products Holdings, Inc. v. Tempnology, LLC. In the Tempnology case (May 2019), the Supreme Court held that trademark licenses are not to be treated specially or differently from other contracts in the context of bankruptcy. When a trademark owner who has licensed a trademark declares bankruptcy, rejection of the trademark license does not automatically terminate the licensee’s continued use of the trademark. Best practices following Tempnology: (1) negotiate significant performance metrics up front and include them in your trademark license agreements; and (2) set shorter initial license terms, with renewal provisions. Use contract obligations rather than the bankruptcy laws to address an under-performing trademark licensee.
About Delaware Bankruptcy American Inn of Court
The Delaware Bankruptcy American Inn of Court is open to all members of the bar who practice in the areas of commercial and individual bankruptcy and debtor-creditor law. Since 2010, the Inn has received the Platinum Distinction (the highest level of achievement) from the American Inns of Court in recognition of the Inn’s outstanding efforts in effective administration, communications, program development, mentoring, community outreach, and participation in the American Inns of Court movement.
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