Tying in trademark licenses

TM Microsoft Corporation. Nickelodeon and all related titles, logos and characters are trademarks of Viacom International Inc. Copyright Raw Thrills Inc. Wheel of Fortune is a registered trademark of Califon Productions, Inc. All rights Reserved. Learn More. My settings. Which cookies and scripts are used and how they impact your visit is specified on the left. LinkedIn Analytics To understand how people use your site, and to discover areas on our site with issues, we use LinkedIn analytics.

Facebook Pixel To understand how people use our site, and to discover areas on our site with issues, we use Facebook Pixel. Instead, the BAP concluded that under section g , Mission had the rights that it would have under the License Agreement and applicable non-bankruptcy law if Tempnology had breached the License Agreement.

The First Circuit affirmed the bankruptcy court, concluding that section n does not apply to trademarks and that the right to use a trademark does not survive rejection under section g , though for a different reason.

The First Circuit also opined that a debtor could not accurately perform a cost-benefit analysis to determine whether the value of the trademark is worth the cost of monitoring.

Because rejection merely releases debtors from their contractual obligations, and not from statutory obligations, Mission argues that the benefit of rejection cannot be undermined by the duty to monitor that is imposed under trademark law.

Ironically, the uncertainty surrounding the effect of rejection on trademarks may enable debtors and licensees to realize better outcomes in bankruptcy than they would if the law were clear. In conclusion, trademark licensing can be an effective and relatively inexpensive way for a trademark owner to expand the use and public recognition of its trademark. But, there are also many pitfalls of which licensors must be aware in order to avoid diminishing the value of their trademarks or, even worse, losing their trademark rights all together.

If you would like to learn more about trademark licenses, or perhaps need some assistance with preparing a trademark license from a skilled trademark attorney, please feel free to contact me at for your free legal consultation. You can also request your consultation by emailing me at morris yourtrademarkattorney.