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The US Court of Appeals for the Tenth Circuit on November 7, 2019, reversed a preliminary injunction requiring Mrs. Fields Franchising LLC to continue a trademark licensing agreement allowing MFGPC the exclusive use of the “Mrs. Fields” trademark on popcorn products. Mrs. Fields Franchising LLC v. MFGPC, 10th Cir., No. 19-4046, 11/7/19.

Mrs. Fields licensed its trademark to MFGPC to use on popcorn, but following a dispute between the two companies, Mrs. Fields issued notice that it was cancelling the licensing agreement. The district court found that Mrs. Fields breached the agreement and granted MFGPC a preliminary injunction for specific performance. It granted the injunction in part because the license was “effectively perpetual.”

But the Tenth Circuit said the district court’s “perpetual license” finding was wrong because the agreement renewed every five years and allowed either party to stop renewing at the end of each term. It also allowed either party to terminate under other circumstances.