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Bankruptcy: What Happens to the Royalty Payments?
In a decision interpreting for the first time certain provisions in the Bankruptcy Code, the Third Circuit Court of Appeals concluded that royalty payments belonged to the estate of the bankrupt debtor/licensor rather than to the new owner by assignment of the underlying intellectual property covered by the licenses. <i>In re CellNet Data Systems, Inc.,</i> 327 F.3d 242 (3d Cir. 2003). The Third Circuit held that the debtor/licensor was permitted to sever the right to receive the remaining royalty payments due on the license from the transfer of the underlying intellectual property rights.
'Personal' Alter Ego Claims in Bankruptcy
<b><i>Part One of a Two-Part Article</i></b> With corporate fraud and bankruptcy filings on the rise, creditors are increasingly looking to related entities, corporate shareholders, directors and officers to pay their claims when the corporation goes belly-up. Unfortunately, bankruptcy courts have made it virtually impossible for creditors to maintain individual alter ego claims against the debtor's shareholders and affiliates. As a result, crafting an alter ego claim that will survive an attack by the bankruptcy trustee (or the bankruptcy court itself) requires finesse.
Debtor Has Right to File Bankruptcy to Limit Landlord's Claims
One of the fundamental policies of the Bankruptcy Code is to provide an equal distribution to all creditors of a debtor's estate. There are a variety of tools under the Bankruptcy Code to accomplish these goals. One such power is the statutory limitation of a landlord's rejection damage claim under section 502(b)(6).
A New Dimension to Asbestos-Related Bankruptcies?
A recent jury verdict in California threatens to break wide open the uneasy issue of aggregated insurance payments in asbestos litigation. <i>Fuller-Austin Insulation Co. v. Fireman's Fund Ins. Co., et al.</i>, No. BC 116835 (Calif. Super. Los Angeles Co.). Its ramifications, however, reach far beyond insurance coverage litigation into every asbestos-related or mass tort bankruptcy.
The Bankruptcy Hotline
Recent cases of importance to your practice.
Letter from the Chairman
This issue of the <i>The Matrimonial Strategist</i> marks the beginning of a new approach to informative, down to earth, practical and instructive articles as a resource and tool in the everyday practice of lawyers in the matrimonial field. Our editorial team plans to focus even more on new trends in the law, innovative legal ideas, and also "minefields" to avoid in representing clients in this highly emotionally charged field of law.
Litigation
Recent rulings of interest to your practice.
Child Support Obligees Must Pay Post-petition Interest
The U.S. Court of Appeals for the Ninth Circuit has ruled that interest on non-dischargeable child support obligations is also not dischargeable, and continues to accrue after a Chapter 13 petition is filed. In so ruling, the court affirmed decisions by the Bankruptcy Court and the U.S. District Court for the Central District of California.

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