Trademark Licensees May Be Able to Have Their (Cup)Cake and Eat It, Too

Following a recent line of high-profile and notable decisions that have sought to protect the rights of trademark licensees in a trademark licensor’s bankruptcy, the United States Bankruptcy Court for the District of New Jersey has issued a significant decision that, for the first time, extends the protections of Section 365(n) of the Bankruptcy Code, 11 U.S.C. § 365(n), to trademark licensees on equitable grounds. In re Crumbs Bake Shop, Inc., No. 14-24287 (Bankr. D.N.J. Oct. 31, 2014) (Crumbs).