Property, intangible

a blog about ownership of intellectual property rights and its licensing

Broken Chain

(Read yesterday’s post below if you haven’t yet)

The court identified two breaks. The easy one was the last one – the oral assignment from Marx Toys, Inc. to the plaintiff. Of course, under § 204(a), a transfer of copyright ownership must be in writing or by operation of law.

There was a second break though, higher in the chain. The plaintiff didn’t produce a document establishing that Chemical Bank owned the copyrights when it transferred them. The subsequent Bill of Sale stated that the copyrights were “repossessed by the Seller from Louis Marx & Co. or its affiliated companies in the exercise of its rights under a security agreement,” but there was no documentation of the actual transfer of ownership to Chemical Bank.

The question with no answer – why the defects weren’t corrected before summary judgment.

American Plastic Equipment, Inc. v. Toytrackerz, LLC, Civ. No. 07-2253-DJW, 2009 WL 902422 (D. Kan. Mar. 31, 2009).

© 2009 Pamela Chestek

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