Under Swiss law, a contract will not automatically be terminated due to the opening of bankruptcy proceedings over a company. Whether a contract can be terminated on insolvency depends on the law and the agreement that governs the contractual relationship. If there is no option for termination, the bankruptcy officer of a insolvent company may choose whether to enter into a contract.
UK law provides a comprehensive set of insolvency procedures of which creditors and debtors may take advantage, each with its own implications for distressed licensors. However, in most cases the administration or liquidation of a licensee will give rise to a right to terminate the licence. Notably, the ability to contract out of UK insolvency laws is severely limited.
Under Luxembourg bankruptcy law, IP licence agreements are regarded as long-term agreements, rather than assets per se. Article 30 of Bill 6539 states that insolvency proceedings do not automatically lead to the termination of ongoing contracts. As there are no specific rules for IP licence agreements in the event of insolvency, the general rules of contract law will apply to such agreements under these circumstances.