• Fourth Circuit Addresses Protections for US IP Licenses in Case Under Chapter 15 of the Bankruptcy Code
  • December 13, 2013
  • Law Firm: Mayer Brown LLP - Chicago Office
  • In a case of significant importance to licensees of US intellectual property, the US Court of Appeals for the Fourth Circuit held in Jaffé v. Samsung Electronics Co. (In re Qimonda), Case No. 12-1802, 2003 WL 26478864 (4th Cir. Dec. 3, 2013) (“Jaffé”), that a bankruptcy court did not err by requiring that the protections of section 365(n) of the Bankruptcy Code apply with respect to a foreign debtor’s US intellectual property (“IP”) as a condition of granting the debtor’s foreign representative relief under chapter 15 of the Bankruptcy Code. This decision affirms that the significant protections for IP licensees pursuant to section 365(n) of the Bankruptcy Code can apply in an ancillary chapter 15 case to US IP even where licensees would receive no similar protections in the debtor’s home country insolvency proceeding.