May 20, 2020

Vendors to Large Retail Bankrupts: Act Quickly to Preserve and Protect Your Rights

Out of Business

With retail clothing companies seeing a 79% decline in business, several prominent retailers have recently filed for bankruptcy – most notably JC Penny, J. Crew (including Madewell) and Neiman Marcus.  As a result, many wholesale vendors of apparel may be having their first ever experience with customer bankruptcies. Sellers must act swiftly when they learn a retail customer has filed. Delay or failure to do so may leave the vendors with little to no means of recovery. When a retailer files for bankruptcy, sellers have a variety of rights under the bankruptcy code and state law.  Two of those most… Read more

May 30, 2019

Supreme Court Rules that Bankruptcy Does Not Revoke a Trademark License

Bankruptcy Court

On May 20, 2019, in deciding Mission Product Holdings, Inc. v. Tempnology, LLC, No. 17-1657, the U.S. Supreme Court settled a circuit split regarding an unresolved legal issue in trademark licensing, determining whether a licensee can continue to use a licensed mark once the licensor files for bankruptcy. Tempnology, LLC (“Tempnology”) manufactured clothing and accessories designed to stay cool during physical activity and marketed these products under the trademark “Coolcore.” In 2012, Tempnology entered into a license agreement with Mission Product Holdings, Inc. (“Mission”), granting Mission an exclusive license to distribute certain Coolcore products in the United States and a… Read more