Practice Note: The Treatment of Subleases in Bankruptcy(1)

This practice note discusses the rights of intellectual property (IP) licensors and licensees in bankruptcies, including the bankruptcy trustee's ability to disclaim, affirm and assign IP licence agreements, as well as the ways in which a licensee may seek to mitigate its risk during the drafting process. The treatment of IP licences in the context of CCAA reorganizations, BIA reorganizations, or receiverships is not discussed in detail since, in some key respects, the treatment of IP licences in those contexts differs from the treatment in bankruptcies. Published by Lexis Practice Advisor Canada – Insolvency.