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Distressed IP: Buying, Selling and Licensing Intellectual Property in Distressed Situations

Recorded on: May. 9, 2013
Running Time: 01:10:17

Taken from the briefing Distressed IP: Buying, Selling and Licensing Intellectual Property in Distressed Situations recorded May, 2013.

The aftermath of the financial meltdown and the continued financial instability around the world give rise to potential opportunities, as well as risks, relating to intellectual property transactions. High-profile bankruptcy filings by global technology companies, such as Nortel and Kodak, followed by the offering for sale of all or a significant portion of their IP portfolios highlighted issues relating to the sale and acquisition of IP assets in bankruptcy and impediments to doing IP deals in distressed situations. Moreover, as the number of financially distressed technology companies increases so do the concerns of such companies’ licensees - as to the licensees’ ability to preserve the licensed rights post-bankruptcy filing, and of such companies’ licensors - as to such distressed companies’ ability to transfer the licensed rights to third parties without the licensors’ consent. Finally, to make things more complicated, recent case law calls attention to the growing discrepancies between the various federal circuits within the U.S., and between U.S. and foreign law, in relation to the treatment of IP licenses in bankruptcy.

Lecture Topics  [Total Time: 01:10:17]

  • Impediments to doing IP deals in pre-insolvency situations (preferences, fraudulent conveyances)
  • Dealing with a bankrupt licensor – rejection risks and Section 365(n) of the U.S. Bankruptcy Code
  • Dealing with a bankrupt licensee – assumption & assignment risks
  • Buying IP out of bankruptcy – risks and opportunities (encumbrances, ‘free and clear’ sales and bankruptcy auctions)
  • International aspects

Presentation Material

  • Patent Sales and Bankruptcy
    Daniel Ilan, Lisa M. Schweitzer
Speaker(s)
Daniel Ilan ~ Cleary Gottlieb Steen & Hamilton LLP
Lisa M. Schweitzer ~ Cleary Gottlieb Steen & Hamilton LLP

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