Title

Avoidance of an Unauthorized Post-Petition Transfer of Intellectual Property Under Section 549 of the Bankruptcy Code

Authors

Kathryn-Rose Russotto

Document Type

Research Memorandum

Publication Date

2023

Abstract

(Excerpt)

Under section 549 of title 11 of the United States Code (the “Bankruptcy Code”), a trustee may avoid an unauthorized post-petition transfer of property of the debtor’s estate. Property is not limited to tangible property. Thus, a trustee can avoid a post-petition transfer of intangible assets, including intellectual property.

This article explores a trustee’s ability to avoid a post-petition transfer of intellectual property. Part I analyzes the legal standard for avoidance of unauthorized post-petition transfers under section 549. Part II examines section 549 in relation to intellectual property. Part III discusses the procedure for remedies a trustee can seek under section 550 upon avoidance of their unauthorized intellectual property transfer.