Delaware Bankruptcy Court Upholds Reclamation Creditors’ Rights


Vendors – take note! The Delaware bankruptcy court In re Reichhold Holdings US Inc. recently issued an important ruling for vendors asserting reclamation rights. Under section 546(c) of the Bankruptcy Code, a vendor may reclaim goods sold on credit to an insolvent debtor that has filed bankruptcy. Reichhold addressed an issue plaguing reclamation claimants:  does a postpetition lender’s subsequently perfected security interest trump the vendor’s reclamation rights when the proceeds from the postpetition loan (“DIP loan”) were used to repay the debtor’s prepetition loan. Judge Walrath ruled in favor of the vendor in this case and held that the vendor’s reclamation rights survived the lender’s DIP loan. This case is significant because it offers a more favorable outcome for reclamation claimants than similar bankruptcy cases decided in New York. Continue reading this entry

Update: Antitrust-Intellectual Property Licensing Guidelines


The Antitrust Division of the Department of Justice (DOJ) and the Federal Trade Commission (FTC) announced, on August 12, 2016, they are seeking public comments on the first update to the Antitrust Guidelines for the Licensing of Intellectual Property issued in 1995. The majority of the Proposed Guidelines update relevant authorities to reflect developments in court decisions, statutory law, the agencies’ practice, and the agencies’ guidance over the past 20 years, while leaving intact the main principles and substantive guidance of the 1995 Guidelines.

The agencies re-affirmed their commitment to three broad principles, namely that the agencies: Continue reading this entry

Enjoy Your Labor Day!

14_10673_AutoBlog_300x225The Manufacturing Industry Advisor team wishes you a safe and happy holiday weekend.

We’ll be back to our regular posting soon.

Thanks for your continued support of our blog!


The Brexit and Patent Law: What You Need to Know


Now that some time has passed since the Brexit vote, some of the ways in which the vote is likely to impact British patent law are becoming clearer. Here is a quick summary of some of the primary concerns.

The UK Patents Act of 1977

The Brexit will not have direct impact the UK Patents Act of 1977, as that is a national patent statute, even though it was enacted after the UK joined the EU in 1973. The portions of the Patent Act creating the Unitary Patent of the EU are administrative, and not substantive. However, Supplementary Protection Certificates (SPC), a creation of the EU, would no longer exist in their current form. Additionally, the compulsory licensing laws created by the EU would no longer exist in the UK. It is possible that British pharmaceutical companies will press for a replacement SPC statute, as they benefit from it. It is less likely that there will be a strong push for new compulsory license laws in the UK. Continue reading this entry

$3 Million Spoliation Sanction Despite Company’s Litigation Hold


Manufacturers involved in litigation must properly preserve electronically-stored information (“ESI”) or potentially face daunting sanctions. A recent antitrust case, however, demonstrates that lessons—multi-million dollar lessons—remain to be learned about how to satisfy the duty to preserve evidence. The Delaware federal court clearly delivered this message by imposing a $3 million sanction, plus associated fees and costs, for a company’s failure to stop a senior executive from deleting potentially responsive ESI. Continue reading this entry