Split First Circuit Prevents Non-Debtor Licensee From Using Rejected Trademark License

Reversing the Bankruptcy Appellate Panel and affirming the bankruptcy court, the U.S. Court of Appeals for the First Circuit recently held that a Chapter 11 debtor-licensor’s rejection of a trademark license “left [the non-debtor licensee] with only a pre-petition damages claim in lieu of any obligation by Debtor to further perform under . . . the trademark license . . . .” In this article, of counsel Michael Cook discusses the court’s decision and why the case is ripe for U.S. Supreme Court review.