What claims require attention in insolvency
The value of tangible assets such as plant and machinery, property, and company vehicles is a significant factor when considering a company’s progression through an insolvency process. Though easy to disregard intangible assets held by a company.
Within these contracts, patents and trademarks lie a significant value that can underpin the outcome of insolvency for the company. They contribute a significant increase to results for the companies unsecured creditors. Improving the chances of a dividend payout.
What claims require attention in insolvency – Intellectual property rights
Intellectual property (IP) represents a significant part of a company’s achievement. Common logos and advertising vogues strengthen consumer belief over time and enhance sales.
So, they can also significantly increase the overall value of a business in an insolvency situation. If the company is then sold as a going concern? The business acquired by a new company following a pre-pack administration can entice additional prospective buyers.
So what is intellectual property?
- Patents, trademarks, and copyrights are examples of intellectual property;
- intangible assets that appear on the company’s balance sheet alongside ‘tangible’ assets such as plant and machinery.
Intellectual property includes:
- domain names;
- website content;
- artwork, and
- other creative works connected to the company.
When insolvency strikes, however, directors need to be aware of the essential value of an intellectual property. They remain required to prove the company’s entitlement to make use of them legally.
Verifying a company’s IP rights
Confirmation of a company’s claims to intellectual property isn’t always straightforward. Th