Intellectual Property in an ABC: How Intangible Assets Are Handled

For technology companies, brands, and content businesses, intellectual property is often the most valuable asset in an ABC estate. How the assignee identifies, values, and sells IP assets can make the difference between meaningful creditor recoveries and a near-zero distribution.

Types of IP in ABC Estates

Common IP assets include: software and source code, customer lists and databases, trade secrets and proprietary processes, trademarks and domain names, patents, and content libraries. Each type has a different market and a different approach to valuation and sale. Assignees with technology sector experience know which buyers to approach and how to structure IP sales that preserve value.

Source code and customer data require careful handling. Customer data held by an insolvent business is subject to privacy law constraints — the assignee cannot simply sell a customer database to the highest bidder without considering CCPA and other privacy obligations. Software source code may be subject to third-party licenses that restrict transfer. Experienced assignees inventory and analyze IP assets carefully before marketing them.

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