is counsel in the firm’s Bankruptcy and Restructuring Department. The views expressed herein are those of the author alone and are not necessarily shared by other persons at Lowenstein Sandler LLP. Each case is unique and the law is subject to interpretation.
Your company and its business have been built around the strength of a trademark license from a third-party licensor. You have invested heavily in the brand. Now, however, your trademark licensor is in financial distress. Bankruptcy is not beyond the realm of possibility. Perhaps the licensor has asked to renegotiate the terms of the trademark license or threatened to terminate the license once a chapter 11 bankruptcy case is filed. What are the respective rights of the distressed trademark licensor and your company, as trademark licensee, in this situation? Is your company at risk of losing everything invested in reliance on the license?