News & Analysis as of

Royalties Commercial Bankruptcy

Womble Bond Dickinson

Future Royalties and Bankruptcy: The Royalty Rollercoaster

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Be careful when you sell intellectual property (“IP”) in return for future royalty payments. You may think your contract is airtight, guaranteeing you a future annuity on the sales of product relating to your IP, but that...more

Jones Day

Third Circuit: Unsecured Claim for Royalties from Intellectual Property Purchased by Debtor Discharged Under Chapter 11 Plan

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Mitigating risk of loss associated with a bankruptcy filing should be an element of any commercial transaction, especially if it involves a sale or license of intellectual property rights. A ruling recently handed down by the...more

Mintz - Bankruptcy & Restructuring Viewpoints

In re Weinstein and Mallinckrodt: Implications for Royalty Financings, M&A Earn-Outs, and Other Transactions Involving Future...

Deal structure matters, particularly in bankruptcy. The Third Circuit recently ruled that a creditor’s right to future royalty payments in a non-executory contract could be discharged in the counterparty-debtor’s bankruptcy....more

ArentFox Schiff

Breaking: Third Circuit Declares Mallinckrodt’s Future Royalty Payment Obligations Dischargeable – Caution, Warning, and Options

ArentFox Schiff on

On April 25, the US Court of Appeals for the Third Circuit issued its precedential opinion in Mallinckrodt v. Sanofi-Aventis, Case No. 23-1111, reminding everyone that “creditors take on risks” when it ruled that the debtor...more

Latham & Watkins LLP

Third Circuit Finds Future Royalty Obligations From Sale Transaction Dischargeable in Bankruptcy

Latham & Watkins LLP on

The Third Circuit ruled that the obligations are prepetition “contingent and unliquidated” claims that can be discharged in a bankruptcy. In the chapter 11 bankruptcy of Mallinckrodt plc and certain subsidiaries (In re...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - February 2024 #2

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Florida State University is pushing for the dismissal of the Atlantic Coast Conference’s NC lawsuit, saying it was prematurely filed to preempt the university’s own suit against the conference, in an attempt to win a “race to...more

Gray Reed

Delaware Bankruptcy Court Treats Royalty Owner Claims as Unsecured

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If you are a royalty owner and have questions about how your claim is likely to be treated when your lessee/operator goes into bankruptcy in Delaware, In re MTE Holdings LLC is a significant case....more

Opportune LLP

Overriding Royalty Interest: A Viable Alternative To Conventional Debt-for-equity Restructuring

Opportune LLP on

By Glenn Sniezek When an oil and gas company is over-leveraged and needs to restructure its debt, the typical option that most companies look at is converting all or a portion of its debt to equity via an in-court or...more

King & Spalding

Recent Developments in the Market for Royalty Securitizations

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The robust market for royalty securitizations from 2018 has continued apace through Q2 2019 and is on track to show significant gains in 2019. New issue volume in whole business securitizations consisting primarily of royalty...more

Bennett Jones LLP

Can an Insolvency Court Extinguish Interests in Land Through Vesting Orders?

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The Ontario Court of Appeal recently released the second of two highly anticipated decisions stemming from the receivership proceedings of Dianor Resources Inc. The first decision clarified the test used to determine when a...more

International Lawyers Network

TOP-10 IP Disputes in 2018

CATEGORY: Trademarks - CASE: Sony vs. PAG - DETAILS: Resolution of the Constitutional Court No. 8-P dated 13 February 2018 - SUMMARY: Unlike the counterfeit, the original (grey) product cannot be destroyed under the...more

Lewitt Hackman

Franchisor 101: Your Neighborhood Debtor

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A bankruptcy court has found that Applebee’s failed to properly terminate its franchise agreements prior to the franchisee petitioning for bankruptcy. Therefore, the franchise agreements remained in effect and were property...more

Dechert LLP

Are Trademark Licenses Protected in Bankruptcy? The Confusion Continues

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Recently, the United States Bankruptcy Court for the District of Connecticut held that while a bankrupt licensor may reject a trademark licensing agreement, the trademark licensee may elect to retain its rights to the...more

Jones Day

Patently Abusive Chapter 11 Cases Filed by Non-Financially Distressed Companies Dismissed for Bad Faith

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In the service of the Bankruptcy Code’s goals of giving debtors a "fresh start" and ensuring that estate assets are fairly and equally distributed among similarly situated creditors, the Bankruptcy Code contains an array of...more

King & Spalding

Fifth Circuit Issues Decision Concerning Overriding Royalty Interests and Louisiana Oil Well Lien Act Claims

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The ATP Oil & Gas Corporation bankruptcy case (Case No. 4:12-bk-36187, S.D. Texas) (“ATP”) involved the intersection of energy and bankruptcy law on a variety of issues. Most recently, the Fifth Circuit Court of Appeals...more

Foley & Lardner LLP

Franchisor Bankruptcy Case Dismissed as a Bad Faith Filing

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The United States Bankruptcy Court for the District of Delaware recently issued an opinion discussing the tension between using bankruptcy as a legitimate tool to maximize value versus using bankruptcy merely as a litigation...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Dumbing Down Intellectual Property: Chapter 11 Impact on IP License Agreements

Innovation and creativity are essential for competitive advantage and success in a global economy. The attendant intellectual property assets are the product of substantial capital investment, and companies should carefully...more

Dorsey & Whitney LLP

Whoomp! There It Is: A Copyright Judgment Creditor’s Final Recovery

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24 years after Tag Team’s hit song “Whoomp! (There It Is)” topped the charts, a long and ugly dispute regarding ownership rights to the song and related copyright infringement damages has been settled in bankruptcy court. The...more

Latham & Watkins LLP

Is Your ORRI What You Think It Is?

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Bankruptcy Court reinforces importance of parties’ intent in determining the nature of overriding royalty interests under state law. On April 2, 2015, the United States Bankruptcy Court for the District of Delaware...more

Troutman Pepper

Bankruptcy Sales: “It Ain’t Over ’Til It’s Over”

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Great Plains Royalty Corp. v. Earl Schwartz Co. (In re Great Plains Royalty Corp.), 520 B.R. 292 (Bankr. D. N.D. 2014) – Two companies that acquired assets in a bankruptcy auction moved to reopen the case to clarify...more

Ervin Cohen & Jessup LLP

What Happens to a Technology Licensee’s Rights if the Licensor Goes Bankrupt?

When a company’s losses and obligations send it into bankruptcy, one of its most powerful tools available in trying to reorganize and emerge is Section 365 of the U.S. Bankruptcy Code. Section 365 allows the bankrupt company...more

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