Abstract
Intellectual property has emerged as a commercially valuable, dominant asset in our economy that has become a necessary component to stimulating and promoting our “free-enterprise, marketbased system.Intellectual property is employed in all sectors of the economy, and in practically all U.S. industries, the assertion of intellectual property rights have become the basis for protecting creative and innovative ideas. The use of patents, trademarks, and copyrights evidencing ownership of innovative ideas provides a legal means to promote economic benefits to businesses, their employees, and consumers.
Highlights
Intellectual property has emerged as a commercially valuable, dominant asset in our economy [1] that has become a necessary component to stimulating and promoting our “free-enterprise, marketbased system [2].” Intellectual property is employed in all sectors of the economy, and in practically all U.S industries, the assertion of intellectual property rights have become the basis for protecting creative and innovative ideas
The federalism question is whether the priority provisions in the Copyright, Patent, or Lanham Act preempt the Uniform Commercial Code (UCC) filing system, requiring lenders with security interests in copyrights, patents, or trademarks respectively to record their interests with the federal office designated by the federal statute to secure priority over competing interests
Intellectual property has become a mainstay of our economy serving as an engine for stimulating free-market enterprise
Summary
Intellectual property has emerged as a commercially valuable, dominant asset in our economy [1] that has become a necessary component to stimulating and promoting our “free-enterprise, marketbased system [2].” Intellectual property is employed in all sectors of the economy, and in practically all U.S industries, the assertion of intellectual property rights have become the basis for protecting creative and innovative ideas. The federalism question is whether the priority provisions in the Copyright, Patent, or Lanham Act preempt the UCC filing system, requiring lenders with security interests in copyrights, patents, or trademarks respectively to record their interests with the federal office designated by the federal statute to secure priority over competing interests. The court held that the Patent Act did not preempt the state UCC perfection laws because the language of the Act spoke only to recordation in the USPTO of transfer of an ownership interest, not to the conveyance of a security interest in a patent as the term “conveyance” is understood in modern times [31]. The court noted that viewing the terms in an historical context and reading them “in light of Supreme Court precedent establishes that Congress was concerned only with providing constructive notice to subsequent parties who take an ownership interest in the patent in question [32].” Despite the unbroken line of precedent holding that the Patent Act does not preempt the state UCC filing requirements, lenders usually file a UCC-1 financing statement with the appropriate state authority and record a patent security agreement with the USPTO [32]
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