Germany: Insolvency/Bankruptcy

When a licensor becomes insolvent, licensees face the risk of losing business-critical IP rights as insolvency administrators can elect to terminate ongoing license agreements. This article examines practical protective measures including sublicenses, escrow arrangements, and security interests that can help safeguard licensee interests, while acknowledging their limitations and the strategic considerations necessary when structuring IP license agreements.

Mayer Brown's "Knowledge Nuggets – Insolvency & Restructuring" series delivers concise, actionable insights into critical insolvency law topics. From recognizing warning signs of insolvency and managing director liability to safeguarding supply chains through direct payment arrangements, these resources help legal and business professionals navigate complex restructuring scenarios with clarity and confidence.

Der Bundesgerichtshof hat in einer aktuellen Entscheidung des für Insolvenzrechts zuständigen IX.