Taylor English attorney Joseph Sullivan discusses trademark risks for brand-owners resulting from "naked licensing" in his article, "Undressing The Risks Of Naked TM Licensing." This article reviews the Mission Product Holdings Inc. v Tempnology LLC can which ruled that "trademark agreements rejected by a debtor in bankruptcy are not deemed terminated or rescinded." Mr. Sullivan highlights the risks that brand owners face if they fail to include certain provisions regarding their trademarks. He provides practical takeaways for suppliers and their counsel to ensure quality control mechanisms are in place.
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Undressing The Risks Of Naked TM Licensing
Brand owners that overemphasize ease of distribution, however, are at risk if their distribution agreements fail to include certain fundamental provisions pertaining to the brand owner's trademarks. Faulty distribution agreements that fail to include adequate quality control provisions in connection with a license to use the brand owner's trademarks can result in the loss of that trademark.
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