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ARTICLE · 27 AUGUST 2013

(Cross-)License Agreements In German Insolvency Proceedings: An Update

Jones Day
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On July 25, the Higher Regional Court of Munich ruled that an irrevocable license does not become unenforceable in German insolvency proceedings.

GermanyInsolvency/Bankruptcy/Re-Structuring
Ansgar Rempp
Ansgar Rempp
Christian Staps
Christian Staps
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On July 25, the Higher Regional Court (Oberlandesgericht) of Munich ruled that an irrevocable license does not become unenforceable in German insolvency proceedings. The judgment concerned the rejection of a cross-license by an insolvency administrator. Cross-license agreements play a significant role in industries with a high concentration of patents, such as the semiconductor, biotechnology, software, and internet industries. To minimize the risks of patent violations, market participants grant to each other rights of use in patents, patent applications, and know-how in specific areas. An appeal against the Munich judgment has already been filed with the German Federal Supreme Court (Bundesgerichtshof, or "BGH"). Whether the decision will be upheld remains to be seen. This Commentary provides a brief update on the situation.

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