Lessons Learned from a Gum Licensing Agreement

More than a decade after the license agreement between The Topps Company and Stani expired, the question of who owns the rights to manufacture and distribute the original Bazooka' bubble gum formula in South America is still unresolved. The Topps Company, Inc. v. Cadbury Stani S.A.I.C. f/k/a Productos Stani Sociedad Anonima Industrial y Comercial, 526 F.3d 63 (2d Cir. 2008). The lesson learned from the licensing arrangement that began in 1956 is that the license agreement and any proceeding agreements need to precisely state which party owns the rights to the technology upon expiration or early termination of the license, and that such terms should be mutually agreeable.