Seventh Circuit Allows Trademark Licensees to Continue Using License After Rejection of Licensing Agreement

July 17, 2012
The U.S. Court of Appeals for the Seventh Circuit, in Sunbeam Products, Inc. v. Chicago American Manufacturing, LLC, recently held that rejection of a trademark licensing agreement by a debtor-licensor does not terminate the agreement, and therefore a trademark licensee can continue using the license after rejection—contrary to the only other court of appeals that has addressed the issue. This update examines the decision.