Bankruptcy ADVISORY – The Tale of Breadcrumbs: Eighth Circuit Finds Trademark License No Longer Executory in Interstate Brands Case

This advisory discusses Lewis Brothers Bakeries, Inc. and Chicago Baking Co. v. Interstate Brands Corp., in which the United States Court of Appeals for the Eighth Circuit, sitting en banc, held that a perpetual, royalty-free, assignable, transferable, exclusive trademark license granted in connection with a substantially consummated asset purchase agreement was not an executory contract that could be assumed or rejected by the licensor-debtor in bankruptcy. The holding should be noted by parties to trademark licenses as it outlines certain rights when a party to the license files bankruptcy.

This advisory is provided on the Alston & Bird website: www.alston.com/advisories/tale-of-breadcrumbs/

Posted by the Bankruptcy, Workouts & Reorganization Group | Alston & Bird LLP