October 28, 2006
Patent license assumption allowed
First published June 27, 2005
In In re Quantegy, Inc., Judge Williams, Jr. held that the debtor could assume its patent licenses with Sony Corporation because the licenses explicitly allowed assignment to a business successor. Thus, taking the assignment language into account, applicable law did not prohibit assignment of the licenses and the debtor could assume. Faced with the concept raised in Sunterra that the contractual consent required is a consent to assumption or free assignment, Judge Williams declined to follow Sunterra. Good for Judge Williams. The Westlaw citation is 2005 WL 1389078 (March 23, 2005). ¶ 3:46 PM
In In re Quantegy, Inc., Judge Williams, Jr. held that the debtor could assume its patent licenses with Sony Corporation because the licenses explicitly allowed assignment to a business successor. Thus, taking the assignment language into account, applicable law did not prohibit assignment of the licenses and the debtor could assume. Faced with the concept raised in Sunterra that the contractual consent required is a consent to assumption or free assignment, Judge Williams declined to follow Sunterra. Good for Judge Williams. The Westlaw citation is 2005 WL 1389078 (March 23, 2005). ¶ 3:46 PM
