Legal Question in Bankruptcy in Massachusetts

Retaining U.S. Patent in Chapter 7 filing.

Is it possible to retain a granted U.S. Patent, as an exempt asset, when it would only have value when used in conjunction with a divisional group of pieces which are patent pending and required to be used in conjunction with the granted patented member, for functionality, under Chapter 7 ?


Asked on 9/14/99, 6:13 pm

1 Answer from Attorneys
Warren Agin Swiggart & Agin, LLC

Re: Retaining U.S. Patent in Chapter 7 filing.

Retaining an U.S. Patent (as opposed to a patent license) is possible in a chapter 7 case. The question of valuation is the key as you do need to be able to place a value on the patent that is within the available exemption limits. The effect of other patents that are not part of the bankruptcy estate should affect the value. Another option is to offer a nominal amount of money to the chapter 7 trustee to purchase the patent rights back. However, as they say, the devil is in the details and this kind of problem should not be approached without counsel.

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Answered on 9/16/99, 4:17 pm


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