Recently, the U.S. Court of Appeals (7th Cir) considered the effect of a bankruptcy sale on a contract to provide a financial-market data service in FutureSource LLC v. Reuters Ltd. The provider, Bridge Information Services, had entered into a contract to provide data to FutureSource, but filed for bankruptcy two years later. Although Reuters purchased the bankrupt provider's assets, the right to receive royalties remained with a third party. FutureSource argued that Reuters should be compelled to provide the data service under the contract. Since the right to receive royalties belonged to another party, this argument would have obliged Reuters to provide the data service free of charge indefinitely. Given that such a result would be illogical, the Court of Appeals held that the bankruptcy court's sales order extinguished all "interests" in the assets that Reuters had acquired, including the interest in the intellectual property rights acquired from Bridge. As such, FutureSource had no claim for contractual rights against Reuters. For a copy of the decision, visit: http://www.ca7.uscourts.gov/op3.fwx?submit1=showop&caseno=02-2060.PDF Concerned about your company's intellectual property rights? Contact Gord Jepson (gjepson@dww.com) or Nicholas Whalen (nwhalen@dww.com) of DWW.

E-TIPS® ISSUE

02 12 19

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