Schilling’sCompany Strikes Out
Studios, the video game company founded by former Major League Baseball pitcher Curt Schilling, relocated to Rhode Island from Massachusetts in April 2011 after securing cash from $75 million in state government bonds issued through the Rhode Island Economic Development Corp. (EDC). Bloomberg reported that 38 Studios pledged its video game assets, patents, software and other property as collateral to help repay the loans.
However, 38 Studios filed Chapter 7 bankruptcy a little over one year later and Bloomberg reported on August 9, 2012, that US Bankruptcy Judge Mary Walrath granted the EDC and Bank of New York Mellon Trust Co. court approval to take possession of the company assets. According to Bloomberg, the EDC and Mellon said that if the trustee appointed to dismantle 38 Studios received permission to abandon computer equipment, then ll or substantially all of the could be irretrievably lost? The bank and the agency also said intellectual property makes up the ast majority?of the company value.
The story of 38 Studios demonstrates how valuable intellectual property is to all types of businesses. While initial rights to intellectual property rest with the creator of the property, individuals and businesses need to make sure that they have taken all necessary legal steps to ensure that their material is protected. Failure to secure the proper copyright or trademark protection could ultimately cost certain parties several thousands, even millions, of dollars later on.
Robert G. Klein
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