Supreme Court Settles Rights of Trademark Licensee Upon Rejection in Bankruptcy

On May 20, 2019, the U.S. Supreme Court issued a significant decision in Mission Product Holdings, Inc. v. Tempnology, LLC, holding that the rejection of a trademark license in bankruptcy breaches but does not rescind the license agreement and that the licensee can continue to use the licensed trademarks in accordance with the agreement.  The Court’s decision resolves a federal circuit split on the issue, puts trademark licensees on surer footing in the event their licenses are rejected in bankruptcy, and will have a variety of implications for practitioners.  Below is a link to our memo that provides an analysis of the opinion and a summary of its implications.