Amends Federal bankruptcy provisions to provide that if the trustee in bankruptcy rejects an executory contract under which the debtor is a licensor of a right to intellectual property, the licensee may elect to: (1) treat such contract as terminated if such rejection amounts to such a breach as would entitle the licensee to treat such contract as terminated by virtue of its own terms, applicable nonbankruptcy law, or an agreement made by the licensee with another entity; or (2) retain its rights as such rights existed immediately before the case commenced for the duration of the contract and for any period for which such contract may be extended by the licensee as of right under applicable nonbankruptcy law.

Provides that if a licensee elects to retain its rights under such contract, then: (1) the trustee shall allow the licensee to exercise such rights; (2) the licensee shall make all royalty payments due under such contract; and (3) the licensee shall be deemed to waive any right of setoff and any allowable claim arising from the performance of such contract.

Provides that on the written request of a licensee which elects to retain its rights, the trustee in bankruptcy shall: (1) provide to the licensee any intellectual property held by the trustee to the extent provided in such contract; and (2) refrain from interfering with any rights of the licensee, including any right to obtain such intellectual property from another entity.

Provides that unless and until the trustee rejects such contract, on the written request of the licensee, the trustee shall: (1) perform such contract or provide to the licensee such intellectual property held by the trustee; and (2) refrain from interfering with the rights of the licensee as provided in such contract to such intellectual property, including any right to obtain such intellectual property from another party.

Defines intellectual property as: (1) trade secrets; (2) inventions, processes, designs, or plants protected under applicable patent laws; (3) patent applications; (4) plant varieties; (5) works of authorship protected under applicable copyright laws; or (6) mask works (semiconductor chip components) protected under applicable copyright laws.

Intellectual Property Bankruptcy Protection Act of 1987 - Amends Federal bankruptcy provisions to provide that, until and unless a trustee assumes an executory contract or unexpired lease under which the debtor has granted rights in intellectual property, the trustee may not interfere with the grantee's rights: (1) to deal with the intellectual property, as provided in the contract or lease; (2) to gain access to or possession of any information or property in existence which the contract or lease provided would be made available to the grantee; and (3) in the case of a trademark, trade name, service mark, or similar intellectual property, to permit existing grantees to continue the quality assurance procedures of the licensor.

Requires that, in cases where the debtor is the grantee under the executory contract or unexpired lease, the trustee, the debtor, and the grantor maintain the confidentiality of any protected information obtained pursuant to the contract or lease to the extent required by applicable nonbankruptcy law.