Fear of Rejection: When a Trademark License Is Rejected in Bankruptcy, Does the Licensee Lose Its Trademark License Rights?

Tempnology LLC granted Mission Product Holdings Inc. a nonexclusive trademark license. Tempnology filed bankruptcy and rejected the parties' agreement. The First Circuit held that rejection terminated Mission's trademark license, leaving it with only a pre-petition damages claim. Tempnology's breach would not have terminated Mission's license rights outside of bankruptcy, and Mission asks the Supreme Court to hold that rejection constitutes a breach that only relieves Tempnology from future affirmative performance obligations but does not revoke Mission's license rights.