Jun 18, 2020

What Happens to a Trademark License If a Licensor Files for Bankruptcy?

Bankruptcy- Trademark License

Retail stores and outlets feature trademark branded merchandise produced under license agreements.  Millions of dollars in manufacturing costs, marketing expenses and distribution chain development are incurred in getting the branded goods from initial concept to the shelf for retail sale.  The current and anticipated wave of fashion industry bankruptcies raises questions about the risk of loss by the licensee on that investment if the brand-owner/licensor files for bankruptcy. What happens when a trademark licensor files for bankruptcy? Does the licensor’s various license agreements continue as if nothing happened? Are the license agreements automatically terminated as part of the bankruptcy process?… Read more

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