There might be few things in life as stressful as encountering dire monetary challenges, and similar issues could disrupt various aspects of one’s life. When financial hardships arise, some may wish to explore the benefits of pursuing relief through outlets such as bankruptcy, but they might be worried about certain aspects of this process. Individuals in Georgia who face similar scenarios may have concerns about what might happen to their intellectual property rights during bankruptcy.
One of the first things to note is that the law treats intellectual property as an asset, and the way assets will be handled may vary with each chapter of bankruptcy. However, even if bankruptcy calls for the liquidation of assets, that does not necessarily mean one will lose rights to intellectual property, as there may also be provisions in bankruptcy laws that help protect such rights. For instance, experts indicate that the Intellectual Property Bankruptcy Protection Act includes terms that may help mitigate the impact a bankruptcy might have on IP licensees and licensors.
This might not mean that all IP rights are fully protected and while the automatic stay may help keep creditors from contacting debtors, creditors may still retain the right to file claims on interests in IP. The contract for an IP license may even include terms on how to proceed should one of the parties involved file for bankruptcy. This aspect of bankruptcy can prove complex in nature and those who face similar concerns may find it helpful to seek guidance in carefully evaluating their options.
Filing for bankruptcy can be stressful enough as is and intellectual property rights is an example of a topic that might only act to further complicate the situation. Individuals in Georgia who wish to know more about their legal rights and options may benefit from speaking with a bankruptcy attorney early on for advice in preparing to make informed choices about their situations. An attorney can help a client better understand his or her rights regarding IP protection in bankruptcy and assist in creating a strategy with which to safeguard his or her future interests through every stage of the process.