Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Sunbeam Eclipsed
A recent decision of the Seventh Circuit Court of Appeals, Sunbeam Prods. v. Chi. Am. Mfg., LLC, 686 F.3d 372 (7th Cir. 2012), has been viewed by many, including the authors of this article, as signaling a potential trend in favor of non-debtor licensees of intellectual property. This decision, described in more detail below, permits the non-debtor licensee to retain trademark rights under a rejected license agreement. Trademarks do not fall within the scope of Section 365(n) of the Bankruptcy Code, which protects certain intellectual property rights of a licensee when a licensor files for bankruptcy and rejects the license. But just as intellectual property licensees may have begun to breathe easier, a reminder came from a Virginia bankruptcy court that their sigh of relief may be, after all, premature, because it may be that a bankruptcy sale free and clear of competing interests in the intellectual property pursuant to Section 363(f) may override all 365(n) and similar rights of non-debtor licensees of intellectual property.
Section 365(n) of the Bankruptcy Code was promulgated by Congress as a direct response to the Fourth Circuit Court of Appeal's decision in Lubrizol Enterprises, Inc. v. Richmond Metal Finishers, Inc., 756 F.2d 1043 (4th Cir. 1985). In Lubrizol, the court held that when a debtor rejects an intellectual property license, the non-debtor party retains no rights in the intellectual property, but rather it is merely entitled to a money damages remedy. In the aftermath of this controversial decision, Congress amended the Bankruptcy Code by adding Section 365(n), which allows licensees to continue using the licensed intellectual property under certain circumstances after the debtor rejects the license. However, the amendment was not a perfect fix, as the Bankruptcy Code's definition of intellectual property (and thus the scope of those property rights protected by Section 365(n)) includes patents, copyrights and trade secrets, but does not include trademarks or franchise agreements.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."