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No. 17-1657October Term 2018Decided May 20, 2019

Docket 17-1657October Term 2018 (2018–2019)

Mission Product Holdings, Inc. v. Tempnology, LLC

After Tempnology filed for bankruptcy, it rejected a licensing agreement that let Mission distribute certain products and use Tempnology’s trademarks.

Case status

Current stage
Decided
Latest event
Decision released May 20, 2019
Case Accepted
Arguments
Decision ReleasedMay 20, 2019
What it's about

After Tempnology filed for bankruptcy, it rejected a licensing agreement that let Mission distribute certain products and use Tempnology’s trademarks. The Supreme Court held that rejecting the contract counted as a breach, not a cancellation, so it did not automatically strip Mission of rights that would have survived an ordinary breach outside bankruptcy.

Question presented

Whether, under §365 of the Bankruptcy Code, a debtor-licensor's "rejection" of a license agreement which "constitutes a breach of such contract," 11 U.S.C. §365(g)-terminates rights of the licensee that would survive the licensor's breach under applicable non-bankruptcy law.

Case path

United States Court of Appeals for the First Circuit / Decision released May 20, 2019

Area

Business and Regulation

Timing

Decided May 20, 2019

The Court released its decision on May 20, 2019 without hearing oral argument.