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Bankruptcy Keyed to Bussel, 12th Ed.
In re Catapult Entertainment, Inc.
Citation:
165 F.3d 747 (1999)Facts
Catapult Entertainment, a California corporation formed in 1994 to create an online gaming network, entered into two license agreements with Stephen Perlman that granted Catapult the right to exploit certain technologies, including patents and patent applications. In October 1996, Catapult filed for reorganization under Chapter 11 of the Bankruptcy Code. Shortly before filing, Catapult had entered into a merger agreement with Mpath Interactive, Inc., which contemplated a “reverse triangular merger” where MPCAT (a wholly-owned subsidiary of Mpath) would merge into Catapult, leaving Catapult as the surviving entity but as a wholly-owned subsidiary of Mpath. As part of its reorganization plan, Catapult filed a motion seeking to assume approximately 140 executory contracts, including the Perlman licenses. Perlman objected to the assumption of his licenses, arguing that federal patent law, which treats nonexclusive patent licenses as personal and nonassignable without the licensor’s consent, precluded assumption under § 365(c)(1) of the Bankruptcy Code.
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