Legal Question in Technology Law in Georgia

File lein against software product to collect debt

ABC Corp contracted my services several years ago as an independent sales agent selling software licenses of their software product on a commission fee basis. The company (along with my contract) was sold to new investors, XYZ Corp,then later reorganized with additional investors. XYZ Corp has not paid my commissions lately. They continue to operate and pay the 3 remaining salaried employees. Their excuse, no money to pay me, and the investor is ''drying up, but I may be paid in another few months.'' I'm concerned that the company could be sold, or the software product itself could be sold, and/or they could go out of business.

I want to file a lien against the copywrited software product itself, so I can be assured that I will be able to collect my commission/money from whoever buys the software product and/or company. Is this possible? If so, how can I go about doing it? I'm no longer with the company as my contract expired recently. They will benefit from my sales to one of my existing customers who will reorder a large number of software licenses in the next few weeks.

Because of their non-payment of my commissions, I'm behind in my bills, on the verge of losing my house, and now looking for another job. Help.


Asked on 9/15/02, 11:29 pm

1 Answer from Attorneys

Michael Hermann Law Office of Michael Hermann

Re: File lein against software product to collect debt

You need to see a good employment lawyer and soon!

This is more a question of employment/independent contractor law under State regs. than a question involving intellectual property (my area). You had continued to represent the successor-in -interest corp/investors, and they benefitted from your services (and continue to do so.) You have a legal right to be paid, and the best way to assure that is to secure that right under state law. SEE A LAWYER SOON, and make sure you have all the original contracts, records of sales, letters & correspondence (including printouts of e-mails,and faxes) with the new owners to document your compensation demand. Good luck.

PS: Yes, the software IP (copyrights, patents, and trademarks affiliated with it) are all general assets of the business, and as such, are usually fair game for a creditor to go after. The question here is where you stand in line on priority and how much debt is "secured" ahead of you and what is left to be covered in a bankruptcy proceeding.

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Answered on 9/16/02, 11:23 am


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