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Franchisor Wins IP Dispute
In bankruptcy, the debtor is entitled to reject (not perform) burdensome contracts. For franchise agreements that contain trademark licenses, the effects of rejection are decided on a case-by-case basis. Sometimes the licensees of the trademarks can continue to use the trademarks over the objection of the franchisor and sometimes not. This issue arose in the Crumbs Bake Shop case in connection with the sale of its assets.
The franchisees (called licensees) of baked goods retailer Crumbs Bake Shop Inc. can continue to use the Crumbs trademark and sell products under the Crumbs brand for the remainder of their licenses' terms, even though the retailer, acting as debtor-in-possession, had moved to reject the licenses following the court's approval of the sale of the business's assets, in In re Crumbs Bake Shop, No. 14-24287, Bankr. N.J. (Oct.31, 2014, Kaplan, M.). The licensees could elect, under 11 U.S.C. Section 365(n), to retain their rights under their respective licenses even though “trademarks” were not included in the Bankruptcy Code definition of “intellectual property.” In addition, sale of the retailer's assets pursuant to 11 U.S.C. Sections 363(b) and (f) did not affect the rights of third-party licensees under Section 365(n). The court held royalties generated as a result of this use were payable to the retailer, because the agreements themselves had not been assumed, assigned, or rejected, and thus continued to be the retailer's property.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.