If a newly self-pulbished author files for Chapter 7 bankruptcy, how must the intangible value of copyrights be assessed?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a newly self-pulbished author files for Chapter 7 bankruptcy, how must the intangible value of copyrights be assessed?
Must copyrights even be mentioned as an asset if the author has e-books for sale, but no official copyrights have been registered? If so, how can value be assessed? Will the court accept a value based on current e-book earnings? Could future royalties be in jeaopordy if the books become more popular?
Asked on March 25, 2012 under Bankruptcy Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
How to assess the value of intellectual property is a question for a CPA, not an attorney; there are a number of different methodologies, but they work best when there is either 1) some evidence of value, such as the amount you paid to purchase the copyright or other intellectual property; and/or 2) some evidence or track record of the income stream from the property. Without such evidence, which a "newly self-published" author would likely not have, unless he or she had previously published other materials or books to which the current ones could be analogized, it is very difficult to assign a value, and that value is apt to be low. That said, when filing Chapter 7 bankruptcy, which is based upon your assets, you must disclose the existence, and to the greatest degree possible, value of all assets owned, including copyrights. Those values will be taken into account in the bankruptcy.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.