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Literal Licensees, Disappearing Collateral And Other Techie Tricks
John D. Penn, Robin E. Phelan
Unlike more conventional debtors, technology based entities bring to the liquidation and reorganization process their own set of issues, many of which are yet unresolved. The assets of many of these prospective debtors consist of no more than a few computers, license agreements and customer relationships, which can disappear overnight. From time to time, a domain name(1) or a web site can add to the value of the enterprise. Often the only valuable assets consist of trade secrets, copyrights, trademarks or patents which must be liquidated or utilized in connection with a reorganization of the debtor. The United States Bankruptcy Code and recent decisions by the courts of the United States illustrate the difficulty of dealing with these types of ephemeral assets.
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