Robert Gerstein Authors Article in Managing Intellectual Property Following U.S. Supreme Court’s Decision in Mission Products v Tempnology
In an article published in Managing Intellectual Property on July 24, 2019, Robert Gerstein discusses the feeling of security that trademark licensees should now have regarding their rights after the U.S. Supreme Court’s decision in Mission Products v Tempnology.
On May 20, 2019, the U.S. Supreme Court’s decision in the case balanced the rights of trademark licensees and licensors. Leading up to the Court’s decision, licensees bringing new products to the market were responsible for investing in new packages, marketing and advertising, manufacturing, etc. which put them at risk of losing everything if the licensor declared bankruptcy.
“Trademark licensees should now feel more secure about the rights they have licensed, potentially leading them to invest more in products sold under the license, or even agreeing to higher royalty rates,” said Gerstein. “Potential licensees should also be more comfortable taking licenses from licensors in poor financial health, potentially keeping them out of bankruptcy.”
Gerstein believes trademark owners, their creditors, and trademark licensees will now be prompted to take the decision into account when structuring transactions.
Subscribers may access Mr. Gerstein’s article “Mission Accomplished for Trademark Licensees” on Managing Intellectual Property online.