October Term 2018 · Docket 17-1657
Can a bankruptcy trustee reject a trademark license?
The dispute centers on whether a debtor can abandon a trademark license during bankruptcy proceedings.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Spinelli explained that Section 365 lets the trustee decide on contract assumption.
Mr. Tripp argued that trademarks differ from other intellectual property rights.
Justice Sotomayor noted that Section 365(n) is not the default rule for IP.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 12, lines 16-21 — Transcript, file page 12, lines 16-21
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
- Official Supreme Court Transcript — file page 4, lines 8-15 — Transcript, file page 4, lines 8-15
- Official Supreme Court Transcript — file page 5, lines 23-7 — Transcript, file page 5, lines 23-7
- Official Supreme Court Transcript — file page 6, lines 16-32 — Transcript, file page 6, lines 16-32
- Official Supreme Court Transcript — file page 6, lines 36-36 — Transcript, file page 6, lines 36-36
- Official Supreme Court Transcript — file page 7, lines 23-34 — Transcript, file page 7, lines 23-34
- Official Supreme Court Transcript — file page 7, lines 7-12 — Transcript, file page 7, lines 7-12
- Official Supreme Court Transcript — file page 8, lines 25-27 — Transcript, file page 8, lines 25-27
- Official Supreme Court Transcript — file page 8, lines 33-34 — Transcript, file page 8, lines 33-34
- Official Supreme Court Transcript — file page 8, lines 7-13 — Transcript, file page 8, lines 7-13
- Official Supreme Court Transcript — file page 9, lines 22-23 — Transcript, file page 9, lines 22-23
- Official Supreme Court Transcript — file page 9, lines 28-33 — Transcript, file page 9, lines 28-33
- Official Supreme Court Transcript — file page 9, lines 36-21 — Transcript, file page 9, lines 36-21
A citizen's guide to the whole case
What this case is about
This case tests the scope of a bankruptcy trustee's power to reject executory contracts. The core conflict involves the interaction between bankruptcy law and intellectual property rights.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
How the case got here
The Supreme Court heard oral argument in this case on February 20, 2019.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 8-15 — Transcript, file page 4, lines 8-15
What each side wants
Mission Product Holdings wants the trustee to reject the trademark license.
Tempnology wants the license to survive the bankruptcy process.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
What each side says
Mission Product Holdings argues Section 365 allows the trustee to reject any executory contract.
Tempnology argues trademark law grants specific rights that bankruptcy law cannot override.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
What the justices asked
Justice Kagan asked which law identifies the principle in question.
Justice Sotomayor questioned why the current rule applies to trademarks specifically.
Official sources for this section
- Official Supreme Court Transcript — file page 12, lines 16-21 — Transcript, file page 12, lines 16-21
- Official Supreme Court Transcript — file page 5, lines 23-7 — Transcript, file page 5, lines 23-7
- Official Supreme Court Transcript — file page 6, lines 16-32 — Transcript, file page 6, lines 16-32
- Official Supreme Court Transcript — file page 6, lines 36-36 — Transcript, file page 6, lines 36-36
- Official Supreme Court Transcript — file page 7, lines 23-34 — Transcript, file page 7, lines 23-34
- Official Supreme Court Transcript — file page 7, lines 7-12 — Transcript, file page 7, lines 7-12
- Official Supreme Court Transcript — file page 8, lines 25-27 — Transcript, file page 8, lines 25-27
- Official Supreme Court Transcript — file page 8, lines 33-34 — Transcript, file page 8, lines 33-34
- Official Supreme Court Transcript — file page 8, lines 7-13 — Transcript, file page 8, lines 7-13
- Official Supreme Court Transcript — file page 9, lines 22-23 — Transcript, file page 9, lines 22-23
- Official Supreme Court Transcript — file page 9, lines 28-33 — Transcript, file page 9, lines 28-33
- Official Supreme Court Transcript — file page 9, lines 36-21 — Transcript, file page 9, lines 36-21
Why it matters
This issue determines the stability of trademark licenses during corporate financial distress. It affects how businesses manage intellectual property assets in bankruptcy.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 12, lines 16-21 — Transcript, file page 12, lines 16-21
- Official Supreme Court Transcript — file page 4, lines 8-15 — Transcript, file page 4, lines 8-15
- Official Supreme Court Transcript — file page 5, lines 23-7 — Transcript, file page 5, lines 23-7
- Official Supreme Court Transcript — file page 6, lines 16-32 — Transcript, file page 6, lines 16-32
- Official Supreme Court Transcript — file page 6, lines 36-36 — Transcript, file page 6, lines 36-36
- Official Supreme Court Transcript — file page 7, lines 23-34 — Transcript, file page 7, lines 23-34
- Official Supreme Court Transcript — file page 7, lines 7-12 — Transcript, file page 7, lines 7-12
- Official Supreme Court Transcript — file page 8, lines 25-27 — Transcript, file page 8, lines 25-27
- Official Supreme Court Transcript — file page 8, lines 33-34 — Transcript, file page 8, lines 33-34
- Official Supreme Court Transcript — file page 8, lines 7-13 — Transcript, file page 8, lines 7-13
- Official Supreme Court Transcript — file page 9, lines 22-23 — Transcript, file page 9, lines 22-23
- Official Supreme Court Transcript — file page 9, lines 28-33 — Transcript, file page 9, lines 28-33
- Official Supreme Court Transcript — file page 9, lines 36-21 — Transcript, file page 9, lines 36-21
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
- Official Supreme Court Transcript — file page 21, lines 10-20 — Transcript, file page 21, lines 10-20
- Official Supreme Court Transcript — file page 33, lines 33-22 — Transcript, file page 33, lines 33-22
- Official Supreme Court Transcript — file page 4, lines 16-22 — Transcript, file page 4, lines 16-22
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.