Jul 14, 2020

COVID-19 & Force Majeure – Guaranteed Minimum Royalties No More?

Plan B Apparel Industry

Is it still true, as the old saying goes, that it is better to offer no excuse than a bad one? The old adage has trouble holding up in today’s climate.  Because of the significant and detrimental impact that COVID-19 has had on the economy, and especially the apparel industry, good excuses are aplenty for licensees in the apparel licensing industry. Due to the pandemic, brand apparel licensees that have entered into license agreements with licensors to use their brand names have had unanticipated difficulty meeting the minimum sales standards and paying minimum royalties. In addition, those licensees are now… Read more


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 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