In Japan, there are four types of insolvency proceedings: bankruptcy proceedings, civil rehabilitation proceedings, corporate reorganization proceedings and special liquidation proceedings (collectively "Insolvency Proceedings").
Generally, contractual claims of a debtor who enters into Insolvency Proceedings will constitute part of their insolvency assets.
Bankruptcy, civil rehabilitation and corporate reorganization:
If the obligations of both the insolvent company and the counterparty under an IP license agreement have not been fully performed at the time of the commencement of the Insolvency Proceedings, a trustee (in the case of bankruptcy proceedings and corporate reorganization proceedings) or a debtor-in-possession (in the case of civil rehabilitation proceedings) may choose to either terminate or perform such an IP license agreement.
However, in the case of a licensor's insolvency, the trustee or the licensor cannot terminate the IP license agreement as long as a licensee may legally assert its license against third parties.
Special liquidation:
In a special liquidation proceeding, a liquidator does not have the right to choose to terminate or perform the IP license agreement. Accordingly, the liquidator and the debtor must perform their respective obligations in line with their duties or obligations pursuant to the IP license agreement.