When a business licenses a trademark, lawyers often warn that if the licensor files for bankruptcy, the licensee could be left without a right to use the mark. This was based on long-standing case law that held a debtor-licensor’s rejection of an IP licensing agreement cuts off the licensee’s right to use the IP. But recent appeals court decisions suggest licensees may be better protected than previously thought.
Intent-to-use (ITU) trademark applications are trademark or service mark applications filed with the U.S. Patent and Trademark Office based on the applicant’s good faith intention to use the mark in commerce in the near future. Companies contemplating the acquisition of trademarks need to be careful with ITUs as there are some potential pitfalls, which were detailed here.