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Feel Secure? Security Interests in Patent Sales Transactions

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Partner Jeffrey Johnson, a member of the firm’s Intellectual Property Group, has authored an article for InsideCounsel entitled "Feel Secure? Security Interests in Patent Sales Transactions."

In recent years, patent holders who have not been financially able to enforce their patent rights have been selling title to their patents using an "earn-out" structure. With this structure, payments are made over a period of time rather than being paid in full when title passes to the seller. Johnson discusses how obtaining a security interest when using this structure will give the seller leverage if the buyer fails to make good on its subsequent payment obligations.

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