Can you lose a patent in a Bankruptcy

grumbleweed

Hi Folks , I've posted this in the Business forum also as i'm not sure where exactly is the best place to ask.

I'm about to be forced into bankruptcy by a vulture fund , it cant be helped they wont listen to any settlement offers. I have a patent in my name that has never been developed or taken any further than the patent itself , it is an original idea i had that i protected. i'd like to hang onto it but could this be considered an asset, I would like to think the idea is probably useless without me behind it driving it along.

jimmycrackcorm

Unless you can find someone to buy it, the value of your patent is zero. I doubt it is an asset.

Mr. Incognito

You have an idea.

It's worthless. The patent could technically be seized but it has no value so it wont be.

Peregrinus

Patents are assets, items of personal property, and they are part of your estate and will pass on bankruptcy. It makes no difference that the patent may have negligible value; it's still an item of property.

However - and someone who knows more about patents can correct me here - SFAIK ownership of a patent doesn't transfer until the appropriate entry is made in the register. It'll be up to the official assignee to take steps to do this and, if he thinks the patent is worthless, he may never do this. So it may in fact be left with you, not because the official assignee has no right to take it, but because he has no interest in taking it.

If that happens I wouldn't exploit the patent in any way, if I were you, until discharged from bankruptcy. If the patent becomes valuable, the official assignee may come looking for it.

grumbleweed

Peregrinus wrote: »

Patents are assets, items of personal property, and they are part of your estate and will pass on bankruptcy. It makes no difference that the patent may have negligible value; it's still an item of property.

However - and someone who knows more about patents can correct me here - SFAIK ownership of a patent doesn't transfer until the appropriate entry is made in the register. It'll be up to the official assignee to take steps to do this and, if he thinks the patent is worthless, he may never do this. So it may in fact be left with you, not because the official assignee has no right to take it, but because he has no interest in taking it.

If that happens I wouldn't exploit the patent in any way, if I were you, until discharged from bankruptcy. If the patent becomes valuable, the official assignee may come looking for it.

Thanks for this .. while i haven't developed the product myself i have had enquiries from overseas regarding manufacture and distribution under a licensing agreement. If the patent is not taken in bankruptcy and i licence after the 12 month bankruptcy period , am i in the clear ..

Fred Swanson

This post has been deleted.

Peregrinus

But you do have to disclose the existence of the patent along with your other assets.

Fred Swanson

This post has been deleted.

grumbleweed

jimmycrackcorm wrote: »

Unless you can find someone to buy it, the value of your patent is zero. I doubt it is an asset.

Transfer into someone else's name for the duration of bankruptcy possibly rather than sell it ..

endacl

grumbleweed wrote: »

Transfer into someone else's name for the duration of bankruptcy possibly rather than sell it ..

Might as well do that for all his assets, so.

Unless that would be illegal? Surely not?

Peregrinus

grumbleweed wrote: »

Transfer into someone else's name for the duration of bankruptcy possibly rather than sell it ..

Don't do this. It's fraud.