John Loughnane publishes “Intellectual Property in Distressed Circumstances – Challenges and Opportunities” in BPLA NewsletterPrint PDF
John G. Loughnane, a partner in the firm’s Business Department, published “Intellectual Property in Distressed Circumstances – Challenges and Opportunities” in the Winter 2014 issue of the Boston Patent Law Association’s (BPLA) Newsletter. The article discusses how in any distressed situation, it is critical for licensors and licensees of the troubled company as well as potential buyers to understand how intellectual property issues are treated in the context of a federal bankruptcy proceeding. The article provides information to assist nondebtor licensors and licensees in responding to the challenges of a counterparty’s bankruptcy filing.
John notes that IP assets will continue to play a prominent role in distressed situations in the coming years and that the tension between bankruptcy law which seeks to maximize value and intellectual property which seeks to protect patents, copyrights and trademarks will deepen. Nondebtor parties with IP licenses with a debtor will need to vigorously protect their rights and avoid harm from any distressed contract party’s efforts to maximize value. Not only should such parties participate actively in any insolvency proceeding involving a counterparty, they should consider downside protections at the outset of the relationship when the license agreement is first drafted and anytime it is amended.