1 (a). What are the general principles of the treatment of IP license agreements in insolvency proceedings? Is there a difference depending on the type of proceeding (e.g., a court-appointed receivership, a bankruptcy, a restructuring, etc.)?
The Insolvency, Restructuring and Dissolution Act does not expressly provide for the treatment of IP rights, including IP license agreements, during insolvency proceedings.
The contractual provisions of the individual license agreement, as well as provisions in the Insolvency, Restructuring and Dissolution Act relating to contracts and property in general, will apply.1 (b). What are the laws governing the treatment of IP license agreements in insolvency proceedings?
The relevant provisions in the Insolvency, Restructuring and Dissolution Act, applying to all agreements, including IP license agreements, are as follows:
- Where a contract has been made with a company that is subsequently placed under judicial management or subsequently goes into insolvent liquidation, the Singapore court may, on the application of any party to the contract, make an order discharging obligations under the contract on such terms as to payment by the applicant or the company of damages for non-performance or otherwise as appears to the court to be equitable.
- A judicial manager or liquidator may, by giving the prescribed notice to creditors and the official receiver, disclaim any onerous property, which includes any unprofitable contract, and any other property that is unsaleable or not readily saleable.