No. 17-1657 In the Supreme Court of the United States MISSION PRODUCT HOLDINGS, INC., PETITIONER, v. TEMPNOLOGY, LLC, N/K/A OLD COLD LLC, RESPONDENT. ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIRST CIRCUIT BRIEF OF THE INTELLECTUAL PROPERTY OWNERS ASSOCIATION AS AMICUS CURIAE IN SUPPORT OF NEITHER PARTY HENRY HADAD WENDY C. LARSON President TRAVIS R. WIMBERLY* JAMES TRUSSELL GIULIO YAQUINTO Chair, Amicus Brief PIRKEY BARBER PLLC Committee 600 Congress Avenue MARK W. LAUROESCH Suite 2120 Executive Director Austin, TX 78701 INTELLECTUAL (512) 322-5200 PROPERTY OWNERS
[email protected] ASSOCIATION
[email protected] 1501 M Street, NW, Suite 1150 Washington, DC 20005 (202) 507-4500 * Counsel of Record QUESTION PRESENTED Whether, under §365 of the Bankruptcy Code, a debtor-licensor’s “rejection” of a license agreement— which “constitutes a breach of such contract,” 11 U.S.C. §365(g)—terminates rights of the licensee that would survive the licensor’s breach under applicable non-bankruptcy law. (I) II TABLE OF CONTENTS QUESTION PRESENTED .......................................... I TABLE OF AUTHORITIES ..................................... IV INTEREST OF THE AMICUS CURIAE ................... 1 STATEMENT .............................................................. 2 SUMMARY OF THE ARGUMENT ........................... 4 ARGUMENT ............................................................... 5 I. The Court of Appeals’ Bright-Line Rule Is Needlessly Restrictive and Problematic. .............. 5 A. Neither Trademark Licensors Nor Licensees Benefit in the Long Run from the Court of Appeals’ Rule. .............................. 6 B. The Court of Appeals Relied on Misguided Concerns About a Licensor’s Quality- Control Obligations. ....................................... 12 C. The Court of Appeals’ Rule Creates Potentially Unreasonable Results. ................ 18 D. The Court of Appeals Relied on Incorrect Assumptions—Disproved by the Statutory Text and the Legislative History—About Congress’ Intent.