http://www.fulbright.com//index.cfm?fuseaction=publications.detail&pub_id=5615&site_id=494&detail=yes#page=1
Seventh Circuit opinion creates circuit split over the effect of rejection of a contract granting a trademark license
Mark A. Platt and Ryan E. Manns
July 11, 2012
On July 9, 2012, in Sunbeam Products, Inc. v. Chicago American Manufacturing LLC, Case No. 11-3920 (7th Cir. July 9, 2012), the United States Court of Appeals for the Seventh Circuit (the ?Seventh Circuit?) issued an opinion (the ?Opinion?) affirming the order of the Bankruptcy Court in the Lakewood Engineering & Manufacturing Co. (?Lakewood?) bankruptcy case.?Specifically, the Seventh Circuit held that, when an intellectual-property license is rejected in bankruptcy, the licensee does not lose the ability to use any licensed trademarks.?The Opinion creates a circuit split with the United States Court of Appeals for the Fourth Circuit (the ?Fourth Circuit?), which previously ruled, in Lubrizol Enterprises, Inc. v. Richmond Metal Finishers, Inc., 756 F.2d 1043 (4th Cir. 1985), that, post-rejection, the licensee loses the ability to use?.?
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