US Supreme Court rules trademark rights may survive bankruptcy rejection MAY 20, 2019 02:08:53 PM. The US Supreme Court ruled Monday that if a trademark license would survive a breach outside bankruptcy, it may survive a debtor’s rejection in bankruptcy.The case, Mission Product Holdings, Inc. v. Tempnology, LLC, came about after Tempnology filed for bankruptcy in 2015. Tempnology was licensing its trademarks to Mission Product Holdings for use on athletic apparel. After Tempnology filed for Chapter 11 bankruptcy, Tempnology issued a rejection of the current trademark license agreement, which would ordinarily result in a breach. Tempnology argued that they could no longer maintain quality control over the trademark and as such could not support the continuation of the agreement. Mission Product Holdings filed suit in bankruptcy court to determine whether the breach by Tempnology could in effect revoke their existing trademark rights. Tempnology won the initial case, but it was reversed by the Bankruptcy Appellate Panel. The Appellate panel was then reversed by the US Court of Appeals for the First Circuit.
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