Posts Tagged: "force majeure"

The global coronavirus (COVID-19) pandemic is disrupting industry on an enormous scale, and its effects are likely to be significant and long-lasting. In response to shelter-in-place orders around the country, businesses are closing, sales of “non-essential” goods and services are declining, and many parties find themselves unable to meet their contractual obligations to business partners or incapable of receiving the benefit of contracted-for goods or services. Such businesses are turning to their contracts in search of provisions that might excuse breaches of contract under these circumstances. These contracts can include IP licenses. These licenses often contain agreements with sales minimums or royalty agreements that may be difficult, if not impossible, to meet during this time of interrupted business and sales. Licensees and licensors both have options under common licenses to either enforce, or excuse, provisions due to COVID-19.