This column has reviewed numerous cases in which a creditor failed to properly create or perfect its security interest in property. And while we’ve also written many times about intercreditor agreements, where creditors often compete for priority as between their respective perfected liens, what is much less common is when a properly perfected creditor is claimed to have subordinated its rights to an indisputably unsecured creditor. And yet, this is what happened to the now defunct New York City-based intellectual property law firm, Kenyon & Kenyon, which recently lost a battle before a New York appellate court over its security interest in patents granted by its client, SightSound Technologies.
