Lenders are urging Congress to pass legislation that would treat intellectual property the same way other assets are handled by bankruptcy courts.

Secured lenders normally establish their right to a defaulted borrower's tangible or intangible assets before unsecured creditors by making a state filing under the Uniform Commercial Code. But some bankruptcy courts have recently ruled that lenders must go through a more complicated federal filing process when the assets are intellectual material such as software programs.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.