In re Select-a-Seat

Citation: Fenia Cattle Co. v. Silver (In re Select-a-Seat Corp.), 625 F.2d 290 (9th Cir. 1980).

The Court of Appeals affirmed the District Court and Bankruptcy Court orders authorizing the licensee, a Chapter X trustee under the former Bankruptcy Act (having the same rights as a Chapter 11 debtor under the current Bankruptcy Code), to reject an exclusive license for [software]] used for remote ticket sale outlets. The licensee had paid an initial payment of $140,000 and agreed to pay a 5% royalty for a 10-year period.

The Court found the license to be executory, based on continuing obligations of the licensee to pay royalties and the continuing obligations of the licensor not to license others. The court allowed rejection of all the debtor's future performance obligations, thereby effectively rendering the license nonexclusive.