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Bankruptcy

Trademarks Are Not Intellectual Property in Bankruptcy Cases, So Circuits Are Split on What Happens upon Rejection of Trademark Licenses

In the Seventh Circuit, a debtor’s rejection of a trademark license does not limit the licensee’s right to assert some rights to the trademark. But in the First and Fourth Circuits, the licensee’s rights in the trademark are categorically transformed upon rejection, leaving it with merely an unsecured prepetition claim for damages.

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