Court of Appeals for the Ninth Circuit August 9, 1994, 93-55422 (In Re Prize Frize, Inc., Debtor. Encino Business Management, Inc. v. Prize Frize, Inc. U.S. Trustee)

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.