Protecting IP Rights Before A Bankruptcy Filing

Law360, New York (August 11, 2009, 1:31 PM EDT) -- How should a licensor/licensee of intellectual property protect its IP rights in the event of the potential bankruptcy of an existing or prospective corporate partner?


In the current economic climate, corporate licensors and licensees of intellectual property are expected to file for bankruptcy in greater-than-usual numbers.

Many financially sound companies have licensed out or licensed in intellectual property rights from companies that are now financially challenged. In the event of bankruptcy, one company’s financial problems could become the other company’s IP problem.

For example, suppose...
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