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IN RE PRIZE FRIZE, INC.

No. 93-55422.

32 F.3d 426 (1994)

In re PRIZE FRIZE, INC., Debtor. ENCINO BUSINESS MANAGEMENT, INC., Appellant, v. PRIZE FRIZE, INC.; U.S. Trustee, Appellees.

United States Court of Appeals, Ninth Circuit.

Decided August 9, 1994.

Attorney(s) appearing for the Case

Michael S. Goergen, Encino, CA, for appellant.

Steven L. Crane, Angel and Neistat, Los Angeles, CA, for appellees.

Before: D.W. NELSON and NOONAN, Circuit Judges, and KING, District Judge.

NOONAN, Circuit Judge:

This case, of first impression in any circuit, turns on whether license fees, paid by a licensee for the use of technology, patents, and proprietary rights, are "royalties" within the meaning of 11 U.S.C. § 365(n)(2)(B) and, as such, must continue to be paid after the licensor in bankruptcy has exercised its statutory right to reject the contract.

FACTS

With slight alterations we adopt the concise statement of facts...

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