Intellectual Property Agreements: The Assumption/Rejection Risk
This practice note provides an overview of the treatment of intellectual property agreements in bankruptcy. Once a debtor files for bankruptcy, an intellectual property license generally is considered to be an executory contract which may be assumed or rejected. However, as set forth below, the Bankruptcy Code and case law provide special protections for parties to intellectual property agreements in some circumstances. This practice note also discusses the effect of a bankruptcy case filed by a defendant in a patent infringement case on the prosecution of the case by the plaintiff complaining of an infringement.
This practice note addresses the following with respect to intellectual property agreements in bankruptcy:
- Intellectual Property Definitions
- Identifying the Bankruptcy Risks for Licensors and Licensees of Intellectual Property
- Executory Contracts Generally
- Licenses under U.S. Bankruptcy Law
- Assumption of Licenses
- Assignment of Licenses
- Rejection of Licenses
- Managing a Licensee’s Assumption Risk
- Patent Infringement – The Bankruptcy Effect
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“Intellectual Property Agreements: The Assumption/Rejection Risk,” by Ira L. Herman was published on March 6, 2020, as a Lexis Practice Advisor® Practice Note. Reprinted with permission.