The Supreme Court resolved a dispute between the circuit courts as to whether a bankrupt brand owner can use bankruptcy law to unilaterally “reject” (or revoke) a trademark license and thus strip a licensee of a right to use the trademark. In the case of Mission Product Holdings v. Tempnology LLC, the Supreme Court held that a bankrupt company’s decision to reject an existing trademark license has the same effect as a licensor’ breach outside of the bankruptcy context (which does not rescind the licensee’s right to continue to use the trademark), such that the rejection does not revoke a trademark licensee’s right to continue to use the trademark.

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