Common use of Security Interests in Licensed IP Clause in Contracts

Security Interests in Licensed IP. Under revised article 9 of the Uniform Commercial Code, the rights of a customer under a software license agreement will be subject to any prior, perfected security interests in the vendor’s software, unless an exception applies.47 Having the license agreement rights subject to such a security interest means that the vendor’s secured lender could foreclose, terminate the license as a junior interest in the vendor’s software, and sell the software free and clear of the cus- tomer’s rights.

Security Interests in Licensed IP. Under revised article 9 of the Uniform Commercial Code, the rights of a customer under a software license agreement will be subject to any prior, perfected security interests in the vendor’s software, unless an exception applies.47 Having the license agreement rights subject to such a security interest means that the vendorvendor ’s secured lender could foreclose, terminate the license as a junior interest in the vendor’s software, and sell the software free and clear of the cus- tomer’s rights.

Security Interests in Licensed IP. Under revised article 9 of the Uniform Commercial Code, the rights of a customer under a software license agreement will be subject to any prior, perfected security interests in the vendor’s software, unless an exception applies.47 applies.44 Having the license agreement rights subject to such a security interest means that the vendor’s secured lender could foreclose, terminate the license as a junior interest in the vendor’s software, and sell the software free and clear of the cus- tomer’s rights.

Security Interests in Licensed IP. Under revised article 9 of the Uniform Commercial Code, the rights of a customer under a software license agreement will be subject to any prior, perfected security interests in the vendor’s software, unless an exception applies.47 applies.44 Having the license agreement rights subject to such a security interest means that the vendorvendor ’s secured lender could foreclose, terminate the license as a junior interest in the vendor’s software, and sell the software free and clear of the cus- tomer’s rights.