Q: What happens when a company owns a patent of product but goes bankruptcy, that patent will be remain active or dead?

1 Lawyer Answer
James L. Arrasmith
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A: When a company that owns a patent goes bankrupt, the fate of the patent depends on the bankruptcy proceedings and the decisions made by the bankruptcy court. The patent itself doesn't automatically become inactive or "dead" due to the bankruptcy.

In a bankruptcy case, the company's assets, including patents, are typically evaluated by the court. The patent could be sold, licensed, or otherwise transferred as part of the bankruptcy proceedings to pay off creditors. This means the patent could end up in the hands of a new owner who may continue to enforce it.

The key point is that the status of a patent is not directly affected by the bankruptcy of its owner. The patent remains valid until its expiration unless it is explicitly abandoned or invalidated.

If you are interested in a patent owned by a bankrupt company, it would be wise to consult with an attorney. They can help you understand the legal process and explore potential opportunities to acquire or license the patent.

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