Intellectual property and insolvency: A case for reform

This article examines the intersection of intellectual property (IP) and insolvency law in Ghana, highlighting deficiencies in the Corporate Insolvency and Restructuring Act (Act 1015) regarding the treatment of IP assets and licensing agreements. Despite advancements in Ghana’s IP laws and the introduction of Act 1015, ambiguities remain concerning the valuation, protection, and continuity of IP rights during insolvency proceedings. The author contends that the Act’s failure to explicitly recognize IP as property and provide clear guidance on licensing agreements creates risks for stakeholders and undermines the potential economic value of IP.

The article draws comparisons to insolvency laws in other jurisdictions, such as the United States, Canada, and Nigeria, noting their more explicit provisions for protecting IP rights and licensing contracts. It emphasizes the importance of recognizing IP as a valuable business asset and the need for a framework that balances the interests of creditors and debtors while safeguarding innovation and investment. The author points out that inconsistencies within Ghana’s legal framework, particularly between Act 1015 and the Companies Act, further exacerbate the problem.

To address these shortcomings, the article proposes legislative amendments to Act 1015, including explicitly recognizing IP as property and providing clear guidance on the treatment of IP licensing agreements during insolvency. It also stresses the importance of effective IP asset management, including identification, documentation, and valuation, as well as the need for insolvency practitioners to develop expertise in handling IP assets. Ultimately, the article advocates for reforms that will enhance legal certainty, promote commercial transactions, and protect the interests of all stakeholders involved in IP-related insolvency cases.

(Source：The Business & Financial Times)