Also known as: intangible property · intangibles
Written by attorneys · grounded in primary & secondary sources — see below
Personal property consisting of assets that lack physical form but possess economic value. Such assets include stock in corporations, bonds, patents, copyrights, notes or accounts receivable, goodwill, and contract rights.
Maya Lofton transfers appliance-design patents she owns to Lofton Appliances Inc. The board authorizes issuance of 200,000 shares in exchange. The patents qualify as intangible personal property that the statute permits as valid consideration for the shares.
Park Surety obtains a security interest in Allied Underwriters' commission receivables, which are payment intangibles. Park Surety files a financing statement describing general intangibles and payment rights. The filing perfects the security interest in the intangible personal property.
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Fair Protection takes control of Allied's controllable payment intangibles under the required UCC section. The security interest in these intangible personal property rights becomes perfected upon obtaining control.
Insurance Carrier obtains control of Allied's controllable payment intangibles to perfect its security interest. When Insurance Carrier later loses control, the security interest in the intangible personal property ceases to be perfected.
Winans misappropriates the Wall Street Journal's prepublication confidentiality in the Heard column. The Journal's interest constitutes intangible personal property that can support a mail-fraud charge when the information is treated as having economic value.
Lugosi's distinctive portrayal of Count Dracula generates commercial value through unauthorized licensing. The court recognizes Lugosi's right to control exploitation of his likeness as a protectible interest in intangible personal property.
Yes. The board may authorize shares for any tangible or intangible property or benefit to the corporation, including patents. The board's determination of adequacy is conclusive as to whether the shares are validly issued, fully paid, and nonassessable.
A security interest in payment intangibles may be perfected by filing a financing statement. It may also be perfected by control when the collateral qualifies as a controllable payment intangible.
Perfection by control continues only while the secured party retains control. Loss of control causes the security interest to become unperfected.
Yes. A performer's distinctive likeness and portrayal can constitute a protectible property interest in intangible personal property that the owner may control against unauthorized commercial exploitation.
…protected by the mail and wire fraud statutes. McNally did not limit the scope of § 1341 to tangible as distinguished from intangible property rights. Both courts below expressly referred to the Journal’s interest in the confidentiality of the contents and timing of the “Heard” column as a property right, 791 F. 2d, at 1034-1035;…