Article
Risks For The Licensee In The Event Of The Licensor's Insolvency
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