Exclusive and Non-Exclusive Licenses of IP Rights Are Treated Differently in Bankruptcy

Aaron Kelly, of The Kelly Law Firm, blogs in TargetLaw  that an exclusive contract of an IP Right most often continues on when the licensor files for Chapter 11 (as an executory contract), but that non-exclusive licenses of IP cannot be assumed and assigned without consent.

This distinction is important for estimating future income streams of companies in Chapter 11.