Why Patent Sales Can Be Unraveled: Risks in Bankruptcy, Liens, and Ownership

This video delves into the potential risks that could unravel patent sales, using Kodak's potential bankruptcy and the sale of its patents as a key example. We explore how bankruptcy courts, shareholder approval, liens, and joint inventor rights can complicate or void patent transactions, even after they’ve been completed. This lecture provides insights into why meticulous legal checks are essential for ensuring clean title and avoiding post-sale disputes.

This discussion includes the role of bankruptcy courts in protecting creditors, the need for shareholder approval when patents represent a significant portion of a company’s assets, and the complications of liens and joint ownership. We also touch on rare cases where government intervention, such as through the Committee on Foreign Investment in the United States (CFIUS), can unravel international transactions for security or economic reasons.

Key topics covered include:

Bankruptcy court powers to void patent sales to protect creditors
Why shareholder approval is required for selling all or most of a company’s assets
The risks of joint ownership in patents and ensuring clean title
Liens on patents and their potential impact on buyers
CFIUS and its ability to reverse foreign acquisitions of U.S. patents for security concerns
The importance of thorough legal checks in patent purchase transactions
Examples of international interventions in patent sales (e.g., China’s similar measures)
This video is a must-watch for businesses, investors, and legal professionals involved in intellectual property transactions.

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