Mission Product Holdings Inc. v. Tempnology LLC (In re Tempnology LLC)
Mission Product Holdings Inc. v. Tempnology LLC (In re Tempnology LLC), ___F3d___, (1st Cir. Jan. 12, 2018)(Circuit case #16-9016 ): The 1/12/2018 decision of the US Court of Appeals for the First Circuit, in In re Tempnology, deepens the split between federal Circuits regarding whether or not a bankruptcy debtor “rejecting” a trademark license, per 11 USC 365, prevents the licensee (creditor) from continuing to use the trademark license, per 11 UDC 365(n): Pointedly disagreeing with the Seventh Circuit, the First Circuit deepened an existing split by adopting the Fourth Circuit’s conclusion in Lubrizol and holding that rejection of a trademark license agreement precludes the licensee from continuing to use the license.
The 2/1 opinion from the First Circuit on Jan. 12 reversed the Bankruptcy Appellate Panel, which, to the contrary, had followed Circuit Judge Frank Easterbrook’s decision in Sunbeam Products Inc. v. Chicago American Manufacturing LLC, 686 F.3d 372 (7th Cir. 2012). In Sunbeam, the Seventh Circuit rejected the Fourth Circuit’s rationale in Lubrizol Enterprises Inc. v. Richmond Metal Finishers Inc., 756 F.2d 1043 (4th Cir. 1985).