Bankruptcy Code’s Patent Protection Extended to Licensees of Foreign Debtors in Chapter 15 Case

November 09, 2011
In a case of first impression, In re Qimonda AG, the Bankruptcy Court for the Eastern District of Virginia found that the protections of section 365(n) of the Bankruptcy Code are available to licensees of U.S. patents in a chapter 15 case even when these protections are not available under the foreign law applicable to the foreign debtor. This update examines the court’s ruling, which found that a refusal to apply section 365(n) was “manifestly contrary to the public policy of the United States” and results in the licensees not being “sufficiently protected.”