How To Sell Intellectual Property During Bankruptcy
November 27, 2013, 1:37 PM EST
Law360, New York (November 27, 2013, 1:37 PM EST) -- Sales of intellectual property in bankruptcy can be divided into two categories based upon whether the debtor is the owner/licensor of the IP or, alternatively, whether a third party owns the IP and the debtor is merely a licensee. As a general matter, IP licenses are usually considered to be “executory” in nature and thus may be assumed and assigned to a buyer under Sections 365 and 363 in a bankruptcy sale.
Lubrizol Enterprises Inc. v. Richmond Metal Finishers Inc., 756 F.2d 1043, 1045 (4th Cir....