102 STAT. 2538
PUBLIC LAW 100-506—OCT. 18, 1988
Public Law 100-506 100th Congress An Act Oct. 18, 1988 [S. 1626]
To keep secure the rights of intellectual property licensors and licensees which come under the protection of title 11 of the United States Code, the bankruptcy code.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE.
(a) DEFINITION.—Section 101 of title 11, United States Code, is amended— (1) in paragraph (50) by striking "and" at the end, and (2) in paragraph (51) by striking the period at the end and inserting in lieu thereof a semicolon, and (3) by adding at the end the following: "(52) 'intellectual property* means— "(A) trade secret; "(B) invention, process, design, or plant protected under title 35; "(CD) patent application; "(D) plant variety; "(E) work of authorship protected under title 17; or "(F) mask work protected under chapter 9 of title 17; to the extent protected by applicable nonbankruptcy law; and "(53) 'mask work' has the meaning given it in s ^ i o n 901(a)(2) of title 17.". (b)
E^XBCUTORT CONTRACTS LICENSING RIGHTS TO INTELLECTUAL
PROPERTY.—Section 365 of title 11, United States Code, is amended by adding at the end the following: "(n)(l) If the trustee rejects an executory contract under which the debtor is a licensor of a right to intellectual property, the licensee under such contract may elect— "(A) to treat such contract as terminated by such rejection if such rejection by the trustee amounts to such a breach as would entitle the licensee to treat such contract as terminated by virtue of its own terms, applicable nonbankruptcy law, or an agreement made by the licensee with another entity; or "(B) to retain its rights (including a right to to enforce any exclusivity provision of such contract, but excluding any other right under applicable nonbankruptcy law to specific performance of such contract) under such contract and under any agreement supplementary to such contract, to such intellectual properly (including any embodiment of such intellectual property to the extent protected by applicable nonbankruptcy law), as such rights existed inunediately before the case commenced, for— "(i) the duration of such contract; and "(ii) any period for which such contract may be extended by the licensee as of right under applicable nonbankruptcy law.