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Leading Attorney Cautions that IP Contracts Overlook Bankruptcy Issues
Monday, April 26, 2010
Karen Artz Ash, National Co-Chair of the Intellectual Property Department at Katten Muchin Rosenman LLP, warns that as the number of businesses entering bankruptcy continues to rise, corporations need to be cognizant of bankruptcy issues when entering into Intellectual Property agreements.
Presenting recently at the PLI seminar in New York, she stated that vital clauses in business contracts that surround intellectual property may be overlooked, stressing the following points:
- The primary objective of bankruptcy proceedings is to maximize the value of the bankrupt firm’s assets, and to maximize the return to creditors.
- The treatment of intellectual property assets embodied in agreements will be subject to achieving these goals.
- Trademark licenses have less protection than other forms of intellectual property licenses.
- Many businesses and attorneys continue to be caught by surprise in bankruptcy when it comes to intellectual property agreements, and should give more consideration of how a potential bankruptcy will affect the licensor and licensee
“Many of these concerns can be mitigated when the correct language is used in drafting a contract,” Ash said. “The problem is that companies are not taking proper care to ensure they are protected in case of bankruptcy.”
Ms. Ash focuses her practice focuses her practice on all aspects of intellectual property law with a concentration in all facets of trademark and copyright law. Ms. Ash handles the structuring of intellectual property, including holding companies and trusts, as well as the creation, development, implementation and administration of licensing, servicing, manufacturing and other commercial agreements for companies worldwide. She handles IP diligence and corporate transactions worldwide, and is skilled in bankruptcy assessments and financings that are dependent on intellectual property assets.
For more information or to arrange an interview with Ms. Ash, please contact Jon Schubin at 212.590.0529 or jschubin@walek.com, or Mary Beth Kissane at 212.590.0536 or mbkissane@walek.com.
About the Intellectual Property Practice
Katten Muchin Rosenman LLP’s nationwide Intellectual Property Practice provides a complete range of services for domestic and international companies seeking to protect and exploit their intellectual property. We recognize that our clients’ patents, trademarks, business names, copyrights, proprietary technology and trade secrets are among their most valuable assets. Therefore, in addition to securing patents, trademarks and copyrights and instituting programs to prevent the loss of trade secrets, we assist clients in exploiting intellectual property rights through licensing, as well as joint venture and technology transfer agreements.
About Katten Muchin Rosenman LLP
Katten Muchin Rosenman LLP is a full-service law firm with more than 600 attorneys in locations across the United States and an affiliate in London. The firm’s business-savvy professionals provide clients in numerous industries with sophisticated, high-value legal services, with a focus on corporate, financial services, litigation, real estate, commercial finance, intellectual property and trusts and estates. Among our clients are a wide range of public and private companies, including nearly a third of the Fortune 100, as well as a number of government and nonprofit organizations and individuals. For additional information, visit www.kattenlaw.com.
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