In a rare case, the Delaware Chancery Court recently interpreted the federal Bankruptcy Code to determine that it has subject-matter jurisdiction over a dispute regarding intellectual property rights abandoned by a debtor in bankruptcy in Spiro v. Vions Technology, No. 8287-VCP (Del. Ch. March 23, 2014).
Chancery Court Vice Chancellor Donald F. Parsons Jr. ruled that under Section 554 of the Bankruptcy Code, the interests of bankruptcy debtor Ionsep Corp. in certain valuable intellectual property had been abandoned to Ionsep creditor Alan Spiro. Thus, Spiro could bring suit against Vions Technology Inc. for the alleged fraudulent conveyance and conversion of the IP and misappropriation of trade secrets.
