Determining and Preserving the Assets of Dot-Coms

61 Pages Posted: 10 Aug 2004

See all articles by Robert Brady

Robert Brady

Young, Conaway, Stargatt & Taylor

Sean Beach

Young, Conaway, Stargatt & Taylor

Karen B. Skomorucha

Young, Conaway, Stargatt & Taylor

Abstract

The dot-com company is not your father's hard asset wielding company. Typical old economy or brick and mortar companies possess hard or tangible assets like equipment, fixtures, and inventory. Dot-com companies, on the other hand, possess less tangible, but not necessarily less valuable, assets like customer lists, data, software technology, trademarks, copyrights, patents, domain names, and other intellectual property. As long as the company remains profitable, so does the company's intellectual and intangible property.

What comes up, however, must inevitably come down. As the dot-com surge has come tumbling down, many dot-com companies, like their sister brick and mortar companies, have sought protection in bankruptcy. Because a dot-com's primary assets are intangible, however, the value of its primary asset tends to decline with the company. In addition, the Revised U.C.C. Article 9 has changed the rules for perfecting security interests in intellectual property. This article presents the problem of determining what assets a dot-com company has at bankruptcy, how to preserve the value of those assets, and who under the Revised Article 9 has a perfected security interest in the assets.

Suggested Citation

Brady, Robert and Beach, Sean and Skomorucha, Karen B., Determining and Preserving the Assets of Dot-Coms. Delaware Journal of Corporate Law, Vol. 28. Available at SSRN: https://ssrn.com/abstract=574041

Robert Brady (Contact Author)

Young, Conaway, Stargatt & Taylor ( email )

PO Box 391
Wilmington, DE 18999-0391
United States

Sean Beach

Young, Conaway, Stargatt & Taylor ( email )

PO Box 391
Wilmington, DE 18999-0391
United States
302-571-6621 (Phone)
302-576-3281 (Fax)

HOME PAGE: http://www.ycst.com/showattorney.asp?Show=74

Karen B. Skomorucha

Young, Conaway, Stargatt & Taylor

PO Box 391
Wilmington, DE 18999-0391
United States

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