Q&As

What considerations should practitioners be taking into account when deciding whether or not the provisions on ipso facto clauses introduced by the Corporate Insolvency and Governance Act 2020 apply to IP licences? Would the considerations be different as between (a) a pure IP licence, and (b) a commercial agreement containing an element of IP licensing (eg a franchise agreement or a sponsorship agreement)?

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Produced in partnership with Caroline Clark
Published on LexisPSL on 21/08/2020

The following IP Q&A produced in partnership with Caroline Clark provides comprehensive and up to date legal information covering:

  • What considerations should practitioners be taking into account when deciding whether or not the provisions on ipso facto clauses introduced by the Corporate Insolvency and Governance Act 2020 apply to IP licences? Would the considerations be different as between (a) a pure IP licence, and (b) a commercial agreement containing an element of IP licensing (eg a franchise agreement or a sponsorship agreement)?

What considerations should practitioners be taking into account when deciding whether or not the provisions on ipso facto clauses introduced by the Corporate Insolvency and Governance Act 2020 apply to IP licences? Would the considerations be different as between (a) a pure IP licence, and (b) a commercial agreement containing an element of IP licensing (eg a franchise agreement or a sponsorship agreement)?

In this Q&A, ‘IP’ is taken to mean intellectual property and ‘practitioner’ is taken to mean insolvency practitioner.

The Corporate Insolvency and Governance Act 2020 (CIGA 2020) introduced new legislation from 26 June 2020 to protect or ensure the continuation of the supply of goods and services to a company that is subject to an insolvency procedure, including liquidation, administration, voluntary arrangement and the new moratorium. The aim of the legislation is to ensure that the suppliers of goods and services cannot terminate contacts for the supply of these goods and services just because the company is subject to an insolvency procedure. These provisions are known as ‘ipso facto’ clauses and have been introduced into the Insolvency Act 1986 (IA 1986) as IA 1986, s 233B.

IA 1986, s 233B does not define what is meant by ‘goods and services’.

Small companies are excluded from the provisions of IA 1986, s 233B for a period from 26 June 2020 to 30 September 2020. This means

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