Butters and others v BBC Worldwide Ltd and others [2009] EWHC 1954

A licensee who was a subsidiary of a joint venture company and who became insolvent would by virtue of a termination clause would be forced to sell his share in the joint venture for a relatively small price.

The court found that terms in a licence concerning intellectual property rights which have the effect of ending that licence where a member of that licence becomes insolvent was contrary to public policy. This term had the effect of preventing the creditors from obtain the value of the licence.

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