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As this article goes to press, an en banc panel of the U.S. Court of Appeals for the Eighth Circuit is scheduled to rehear arguments in In re Interstate Bakeries, relating to the rights of trademark licensees in the event of a licensor's bankruptcy.1 The original panel of circuit judges determined that a perpetual, royalty-free, exclusive trademark license granted as part of a larger asset sale was subject to rejection as an executory contract pursuant to §365 of the Bankruptcy Code. However, that decision seemingly conflicts with other recent circuit court decisions allowing trademark licensees the continued use of licensed trademarks notwithstanding efforts by debtors to reject the licenses.

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